By Sean McLain

Tesla's net income slid 71% in the first quarter, as the company struggled to overcome competitive pressure overseas and a reputational hit from Chief Executive Elon Musk's polarizing role in the Trump administration.

The company also reported adjusted earnings-per-share of 27 cents, which missed analysts' expectations of 41 cents.

Tesla revenue fell in the first quarter after a steep decline in automotive sales, including double-digit percentage drops in crucial markets including the U.S., China and Germany.

The electric-vehicle maker reported $19.3 billion in revenue for the quarter, down 9% compared with the same period last year. Revenue from the company's automotive business fell 20%. The energy business grew 67%.

Tesla also reported $595 million in revenue from other automakers who pay Tesla for carbon credits to offset their sale of conventional vehicles, up sharply from a year earlier.

The company reported a 2.1% operating margin for the period, compared with 5.5% a year earlier.

Tesla's core auto business is under pressure. The company's global vehicle deliveries fell 13% in the first quarter, partly because of a consumer backlash against the brand in response to Musk's role as President Trump's cost-cutting czar. Tesla has faced protests across the U.S. and Europe, and some of its stores and charging stations have been vandalized or even set on fire.

Some analysts also have said that customers likely delayed purchases as they waited for the recent introduction of a refreshed version of Tesla's Model Y, the company's top seller.

Tesla also is contending with 25% tariffs imposed on auto imports. While Tesla builds its U.S.-sold cars in Texas and California, it relies on neighboring countries for components, including Mexico, which supplies more than 20% of its parts, according to federal data.

Estimates from third-party research providers show significant sales declines in some of Tesla's biggest markets, including California and China. The company doesn't disclose delivery figures by model or region.

In California, the nation's largest EV market, Tesla's first-quarter market share fell to 44% of all zero-emission vehicle registrations in the state, from 56% a year earlier, according to the California New Car Dealers Association.

Tesla shipments fell about 22% in the quarter in China, while its deliveries sank 62% in Germany, according to industry trade groups.

To spur sales, Tesla in April released a less-expensive version of the Cybertruck, priced at $69,990, with low-cost features including fabric seats. The company is also developing a lower-cost version of its Model Y.

-- This breaking-news article will be updated.

Write to Sean McLain at sean.mclain@wsj.com

(END) Dow Jones Newswires

April 22, 2025 16:25 ET (20:25 GMT)

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