Tesla’s grip on the EV market is loosening amid industry headwinds

The news: Tesla reported a steep fall in Q1 revenues and profits as the company struggles with stiffer competition, tariff uncertainty, and growing criticism of its CEO.

• Auto revenues dropped 20% YoY, while net income plunged 71% YoY.
• The company refrained from giving guidance for this year, citing uncertainty related to “the impacts of shifting global trade policy” on its supply chain, cost structure, and demand.

A challenging position: Tesla is contending with several headwinds—some that are of its own making, and others related to the highly volatile macroeconomic environment. The company’s lack of innovation, coupled with its polarizing founder and CEO Elon Musk, are causing it to lose market share even as EVs gain traction in the US and elsewhere.