Tesla’s Q1 Earnings Miss Estimates

Tesla (TSLA) on Tuesday reported first-quarter results that missed analysts’ expectations.

The electric vehicle maker reported adjusted earnings of $0.27 per share on revenue of $19.34 billion, down from earnings of $0.45 per share on $21.3 billion in revenue a year ago, well below analysts’ forecasts compiled by Visible Alpha.

Analysts have warned that CEO Elon Musk’s involvement in the Trump administration is likely hurting Tesla, as sales have fallen in a number of key markets for the EV maker to start the year.

“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 our peers,” the company said in Tuesday’s release. “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”

Tesla said the Trump administration’s current tariff plans will have a “relatively larger impact” on its renewable energy business compared to the automotive side, and the company said it is “taking actions to stabilize the business in the medium to long-term and focus on maintaining its health.”

Tesla shares wavered between slight gains and losses in extended trading after the report was released, after gaining 4.6% in Tuesday’s session.