Tesla Profits Tank 71%—Elon Musk Blames 'Shadowy Forces' as Robotaxi Hype Falters

Carbon Credits: Tesla's Lifeline

Despite the dire financial performance, Tesla was able to generate $595 million in revenue from carbon credits—cash paid by conventional automakers to cover their emissions.

Without the credits, Tesla would have reported an operating loss, according to Gizmodo. This dependence illustrates just how tenuous the company's profitability actually is.

Protests, DOGE, and Public Distrust

Outside the boardroom, Tesla's reputation is also in jeopardy. According to the Wall Street Journal, demonstrations have erupted at Tesla showrooms across the country, spurred by Musk's leadership of DOGE—a dubious agency said to be behind cutting 280,000 government positions. Tesla buildings have even been vandalized and burned.

During the earnings call, Musk trivialized the demonstrations, stating they're "paid for" and "highly organized" but presenting no evidence.

He also announced that he would be taking a step back from DOGE after May without elaborating on what that meant. Nevertheless, Musk promised to remain engaged in government "through Trump's full term. This, however, only aggravated the public's distrust of his businesses.

Consumer Confidence Hits a Wall

What once fueled Tesla's brand—futurism, innovation, and sustainability- has now been replaced by controversy, political extremism, and broken promises. The long-anticipated $25,000 Tesla appears to be scrapped, and instead, we're left with vague ideas, unrealized Cybercabs, and ever-shifting timelines.

Musk's turn towards political clout at the expense of corporate accountability is blurring the brand that created the EV revolution.

For the consumer base, Tesla is not simply a vehicle manufacturer anymore—it's a cultural movement that people do not want to be part of.