US group Tesla has withdrawn its guidance for full-year EV sales amid tariff uncertainty and a 20% slide in quarterly auto revenue, Kallanish reports.

Ceo Elon Musk, who is a senior advisor to US President Donald Trump, said in an earnings call on Tuesday that Tesla is “the least affected car company… at least in most respects” by tariffs, although they are “still tough on a company when margins are still low.” Musk added that he believes that lower tariffs “are generally a good idea” and noted that Tesla’s localised supply chains should help it in comparison to competitors.

According to chief financial officer Vaibhav Taneja, tariffs on imports from Canada and Mexico enforced in May will add “a couple thousand dollars” to the price of Teslas, as they are 85% compliant with the United States-Mexico-Canada agreement. He also warned that the tariff impact on the energy storage arm will be “outsized” as its lithium iron phosphate battery cells are sourced from China.

The rate of growth in 2025 “will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment,” the carmaker said in a statement, adding that full-year guidance would be shared in the next update.

Tesla stressed that it has “sufficient liquidity” to fund its planned activities, such as producing cheaper models, which is still slated to begin H1 2025, and Cybercab production from next year. The new EVs will be built using both next-generation and current platforms, meaning that Tesla will use its maximum capacity of nearly 3 million vehicles, which is expected to boost this year’s production by 60% compared to 2024. 

Moreover, the company says it remains on track for the pilot launch of the Robotaxi in Austin by June. A pilot production line for the Optimus humanoid robot is still slated for 2025, as robots are also being deployed to carry out “useful work” across its factories.

In Q1, total revenues shed 9% to $19.3 billion, with automotive dropping by 20% and energy storage climbing by 67%. Net income tumbled by 71% to $409m, which the company attributed to a decline in vehicle deliveries and lower average selling price. The quarter ended with $37 billion in cash, cash equivalents and investments.

“As expected, a messy quarter impacted by the Model Y refresh (which took production out by several weeks) and lower demand given expectations of the affordable model coming in Q2/Q3,” analysts at RBC Capital Markets comment.

Shares rose by 7% in premarket trading on Wednesday.