Tesla’s flailing sales figures have put the company closer to the red than it has been in years, according to financial results released Tuesday, threatening one of its biggest advantages over other EV players. The electric automaker reported $409 million in net income on $19.3 billion in revenue after delivering almost 337,000 EVs in the first quarter of the year. The company’s net income reflects a 71% drop from the same quarter last year. It was the worst quarter for Tesla deliveries in more than two years and came on the heels of the company’s first-ever year-to-year drop in sales.  Tesla’s income was buffeted by $595 million in zero-emissions tax credits, according to its earnings report. The company also cautioned about how the trade way may affect its business moving forward.  Tesla says the trade war and “changing political sentiment” could have a “meaningful impact on demand for our products.” The company added that the “dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.” The company noted the current tariffs, the bulk of which are directed at China, will have “a relatively larger impact on our Energy business compared to automotive.” Tesla said it is taking actions to stabilize the business in the medium to long-term and focus on maintaining its health. Tesla did stick to some of its more ambitious plans around more affordable models, stating it remains on track for start of production in the first half of 2025. These vehicles will use aspects of a next-generation platform and pull from its existing one, the company said in its shareholder’s letter. These cheaper vehicles will be produced on the same manufacturing lines as our current vehicle lineup, the company said. Tesla’s sales are up against a number of headwinds.  The company’s EV lineup is aging (though the sedans and SUVs have now all gotten facelifts) and its newest product, the Cybertruck, is nowhere near the hit that CEO Elon Musk thought it could be. It is working on a lower-cost vehicle that is speculated to be a bare-bones Model Y, but Reuters reported last week that this EV is delayed by months. And Musk’s far-right politics, along with his involvement in the Trump administration, have created a sizeable backlash to Tesla’s brand.  At the same time, Musk has oriented the company at its Robotaxi and Optimus robot projects.  He has promised to launch an initial version of the Robotaxi service in Austin this June, with other cities potentially coming by the end of this year, but has been light on details about how it will work.  Musk has yet to demonstrate that Teslas are capable of driving themselves without human intervention despite years of making that promise. What’s more, The Information recently reported that an internal analysis done at Tesla showed the Robotaxi program would lose money for a long period of time even if it were to work.  At this time last year, Tesla was grappling with some gloomy numbers. In case you forgot, the company’s profits fell 55% to $1.13 billion in the first quarter of 2024 from the same period in 2023. Tesla said it was due to a protracted EV price-cutting strategy and “several unforeseen challenges” cut into the automaker’s bottom line. Tesla tried to turn that profit ship around, but faced continued pressure. In Q2 of 2024, Tesla reported $1.5 billion in profit, down 45% from the same period in 2023. Profits were hit by a $622 million restructuring charge. Although it’s worth noting, that profit was padded by a record $890 million in regulatory credit sales.