Tesla Inc (NASDAQ:TSLA) stock rose 8.34% (As on April 23, 11:22:24 AM UTC-4, Source: Google Finance) after the company’s CEO Elon Musk said that he will be pulling back significantly on the time he spends with the US government starting May. He said that he will continue to spend a day or two per week on government matters or as long as the president would like him to do so and as long as it is useful. Tesla’s results for the first quarter were an all-round miss. Its net profit fell over 71% from last year to just over $400 million during the quarter. Tesla cautioned investors that “uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and its peers. The switchover of production lines for the New Model Y resulted in several weeks of lost production. Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. These vehicles will utilize aspects of the next generation platform as well as aspects of the current platforms and will be produced on the same manufacturing lines as the current vehicle lineup. The company’s purpose-built Robotaxi product – Cybercab – will continue to pursue a revolutionary “unboxed” manufacturing strategy and is scheduled for volume production starting in 2026. But within days, China-based competitor BYD unveiled advances in self-driving technology, which the company said was set to be included in models costing as little as $9,600.

Moreover, the operating income decreased 66% YoY to $0.4B, resulting in a 2.1% operating margin. Quarter-end cash, cash equivalents and investments was $37.0B. The sequential increase of $0.4B was primarily the result of positive free cash flow of $0.7B.

TSLA in the first quarter of FY25 has reported the adjusted earnings per share of 27 cents, missing the analysts’ estimates for the adjusted earnings per share of 39 cents. The company had reported the adjusted revenue decline of 9 percent to $19.34 billion in the first quarter of FY25, missing the analysts’ estimates for revenue of $21.11 billion. This is due to decline in vehicle deliveries, in part due to the Model Y update across all four vehicle factories, reduced vehicle average selling price (ASP) (excl. FX impact1), due to mix and sales incentives, negative FX impact of $0.3B1 + growth in Energy Generation and Storage and Services and Other + higher regulatory credit revenue.