Tesla has abandoned its earlier sales growth expectations for 2025 and has committed to reassessing its outlook in the second quarter, indicating that tariffs, an aging product lineup, and external dissatisfaction with CEO Musk are affecting the company. The company reported an adjusted operating profit of $0.399 billion for the first fiscal quarter, a 66% year-on-year decline, compared to an estimate of $1.13 billion. Tesla omitted earlier forecasts about a recovery in annual sales growth, instead stating that the company is engaging in 'prudent investments' to prepare for growth in its Autos business. This will depend on factors including production growth and the 'broader macroeconomic environment.' Tesla stated, 'It is difficult to gauge the impact of changes in Global trade policies on the Autos and Energy supply chains, our cost structure, and demand for durables and related services.'