Tesla has reported its lowest quarterly profit since 2020, signaling a significant financial setback for the electric vehicle (EV) giant. The company attributed the sharp decline in earnings to a combination of weak global vehicle sales and increasing public scrutiny surrounding CEO Elon Musk’s political activities. The results mark a concerning shift for the automaker, which has long been regarded as a leader in the electric mobility revolution and a symbol of innovation in the automotive industry.

According to Tesla’s financial disclosures, reduced demand in key markets, intensified competition from other EV manufacturers, and economic uncertainties have all contributed to the slump in vehicle sales. Analysts also point to rising production costs, supply chain disruptions, and price cuts as factors that have eroded profit margins. While Tesla has introduced new models and invested in expanding its manufacturing footprint, these efforts have yet to fully offset declining consumer interest and market saturation.

Compounding the company’s challenges is the public backlash over Elon Musk’s increasing political involvement, which some investors and customers view as a distraction from core business operations. Musk’s controversial statements and political endorsements have stirred debates and drawn criticism from across the political spectrum, potentially impacting Tesla’s brand image and customer loyalty. In response to growing concerns, Musk announced that he intends to scale back his political engagements and refocus his attention on Tesla’s strategic goals and technological advancements.

Despite the disappointing earnings report, Tesla remains optimistic about its long-term prospects. The company is expected to continue investing in next-generation battery technologies, autonomous driving systems, and global expansion. Market watchers will be closely monitoring how Tesla navigates this turbulent period and whether Musk’s renewed focus on operations can help restore investor confidence and revitalize the company’s financial performance.