Tesla(US:TSLA) Sou Hu Cai Jing·2025-04-27 08:13Core Viewpoint - The collaboration between Trump and Musk, referred to as the "TM combination," initially appeared to promise a resurgence of American dominance but has since resulted in significant setbacks for both parties, particularly for Tesla and its sales performance [1][3]. Group 1: Tesla's Performance - Tesla reported a net income of $409 million for Q1, a 71% year-over-year decline, with automotive revenue down 20% and a reduction of 50,000 vehicles in deliveries [3]. - In February, Tesla's sales in China were 30,688 units, a 49.2% year-over-year decrease, while competitor BYD saw a 161.4% increase in deliveries, reaching 318,233 units [5]. - Tesla's sales in Europe dropped by 42.6% year-over-year, with fewer than 17,000 units sold in the EU, UK, and EFTA countries [5]. Group 2: Impact of Tariffs and Political Involvement - Trump's tariffs, signed in April 2025, imposed a 25% tax on imported vehicles and parts, significantly increasing Tesla's supply chain costs, particularly for components sourced from China [5][10]. - Musk's political involvement has led to criticism from investors, who urge him to focus on Tesla's management instead of political matters, as his controversial statements have diminished consumer trust [7][8]. Group 3: Trump’s Political Standing - Trump's approval ratings have plummeted to their lowest since returning to the White House, as he contemplates reducing tariffs on China by 50% to 65% [10]. - The backlash against Trump's policies, including government layoffs and budget cuts, has intensified opposition across various sectors in the U.S. [10]. Group 4: Future Outlook - The partnership between Trump and Musk is characterized as a "short-term benefit exchange" with potential long-term risks, indicating that their collaboration may be nearing its end as both face significant challenges [12].