NEW YORK: Elon Musk says he’ll dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit. The company has faced angry protests over Musk’s leadership of a federal government jobs-cutting group that has divided the country.
Tesla, based in Austin, Texas, said Tuesday that quarterly profits fell by 71 percent to to $409 million, or 12 cents a share. That’s far below analyst estimates. Tesla’s revenue fell 9 percent to $19.3 billion in the January through March period, below Wall Street’s forecast.
The disappointing results come as the company struggles to sell cars to consumers angry over Musk’s role in the Trump administration. Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there, too.
Some Tesla investors have complained that Musk has been too distracted by his role at the Department of Government Efficiency, or DOGE, to effectively run Tesla.
“This is a big step in the right direction,” said Wedbush Securities’ Dan Ives, referring to Musk’s time commitment. “Investors wanted to see him recommit to Tesla.”
Tesla’ stock has fallen more than 40 percent this year but rose more than 3 percent in after-hours trading.
Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable.
“They’re not particularly surprising given that deliveries were down,” Goldstein said, adding that the company is still generating cash. “It was good to see positive cash flow.”
The company generated $2.2 billion in operating cash versus $242 million a year earlier.
Tesla investors will be listening closely for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June.
Its closely watched gross margins, a measure of earnings for each dollar of revenue, fell to 16.3 percent from 17.4 percent.
The company that once dominated EVs is also facing fierce competition for the first time.
Earlier this year, Chinese EV maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk.
Investors expect Tesla will be hurt less by the Trump administration’s tariffs than most US car companies because it makes most of its US cars domestically. But Tesla won’t be completely unscathed. It sources some materials for its vehicles from abroad that will now face import taxes.
Tesla warned that tariffs will hit its energy storage business, too.
“While the current tariff landscape will have a relatively larger impact on our Energy business compared to automotive,” the company said, “we are taking actions to stabilize the business in the medium to long-term and focus on maintaining its health.”
Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.
The company side business of selling “regulatory credits” to other automakers that fall short of emission standards boosted results for the quarter.
The company generated $595 million from credit sales, up from $442 million a year ago.

CHICAGO: Leaders of the Arab American Catholic community are this week mourning the death of Pope Francis who, to them, was an outspoken champion of Arab and Palestinian rights.

Francis, the first Latin American pontiff, died at the age of 88 on Monday in the Vatican after a long illness, the day after Christians around the world celebrated a rare convergence of both the traditional and Orthodox Easter holidays.

During his 12-year papacy, he was vocal in his support of all those suffering in the world, and maintained a special place in his sermons and public remarks for addressing the suffering of Palestinians in Gaza in particular, Arab American Catholic leaders said.

Rev. Samer Al-Sawalha of the Good Shepherd Arab Catholic church, a growing Arab parish in California, told Arab News: “Pope Francis was against war, especially in the Middle East, and all the conflicts in the world.

“He always supported the Christian community, especially in the Holy Land. When he visited the Middle East, he visited different areas and always showed that the Catholic Church cared about Arab Christians, who are unfortunately now a minority in the Middle East.”

Popes might not wield “political power” but they have “a powerful moral power” that can influence world events, he added.

“Pope Francis was always in contact with the Catholic Church in Gaza,” he said. “He spoke every day with priests in the Gaza Strip to make sure that the Christian community there is good, and they have what they need.

“That is unusual, for a pope to be close to the Christian community in the Middle East and to have a strong position against Israel’s policies, the Gaza war, and also all the conflicts in the region.”

During Israel’s siege of Gaza, Al-Sawalha said, Pope Francis would often call the pastor of the Church of the Holy Family, a small Roman Catholic congregation in Gaza City, “just to check in.”

He said the pope had expressed more concern about the suffering of Palestinians, Lebanese, Syrians and Iraqis than was often the case among his predecessors, who also preached the need for peace and an end to war and suffering.

“Popes in the past have always expressed hope for peace but Pope Francis seemed to show more than others,” Al-Sawalha said. “He kind of stepped it up a little bit, at times when it was needed, and it helped.

“It’s unusual for a pope to video call one of our priests from the Latin Patriarchate of Jerusalem every day to check up on him, to make sure that the parish there had everything they needed.

“And even sometimes he asked them, ‘What did you eat today?’ That showed how Pope Francis really cared, not just in terms of politics and all the fancy words, but that he really cared for the people and what they were experiencing.”

Al-Sawalha said the pope was very popular among the congregation of his parish in San Jose, which consists of about 120 mainly Jordanian and Palestinian families, along with Syrian, Lebanese, Egyptian and Sudanese immigrants.

“His concern for the Palestinians of Gaza left a huge impact on the Christian community in general,” he added. “It shows that the Catholic Church is concerned about them, and a struggle that sometimes we are not able to speak about because of the sensitivities of the situation in the Middle East, and because Christians are minority in the Middle East.

“The support of the Catholic Church, through Pope Francis, strengthened the voice of the Arab Christian community”

During his final public appearance, on Easter Sunday, Pope Francis called for a ceasefire in Gaza, Father Al-Sawalha noted, adding: “That was powerful.”

Catholic cardinals from around the world have begun to gather at the Vatican for a conclave during which they will select a new pope to lead the world’s 1.4 billion Catholics. After each round of voting, the ballot cards used by the cardinals will be burned and Christians around the world will watch the chimney at the Vatican to see the color of the resulting smoke: black smoke signals that the vote was not decisive and another will be held following further deliberation, while white announces a successor has been chosen.

Only a few of the 120 cardinals who will choose the new pope are of Arab heritage, Al-Sawalha said, and he does not expect an Arab will be chosen to succeed Francis.

“But it is very important for them to show that the new pope will be someone who is close to all Christians, not just in Europe or the Middle East,” he added.

“I would like to see a new pope whose teachings are clear and who holds to traditions, the traditions of the Church, and someone who has clear vision about the teachings of the Church with a firm position on the traditions of the church.

“I also would like to see a new pope who has also the characteristics of Pope Francis, who cared about the poor, the marginalized and for social justice. That is our hope.”

Francis — born Jorge Mario Bergoglio in Buenos Aires, Argentina, on Dec. 17, 1936 — was the first Pope from the Americas, the first from the Southern Hemisphere, and the first Jesuit.

His death was mourned not only by Catholics and Christians but by the wider Arab American and Muslim communities, too.

Imad Hamad, executive director of the American Human Rights Council, based in Dearborn, Michigan, wrote in a tribute: “Pope Francis was more than a spiritual leader; he was a humanitarian whose actions spoke louder than words. He championed social justice, migrants’ rights and global peace, living a life of profound humility and solidarity with the poor and marginalized.

“In his final Easter address, Pope Francis reaffirmed his call for peace, urging a ceasefire in Gaza and Ukraine. He condemned the violence in Gaza, describing it as ‘war’ and ‘terrorism,’ and appealed for an end to the cycle of suffering in the Holy Land. His words were a plea for humanity to rise above division and embrace compassion.”

The American-Arab Anti-Discrimination Committee praised the pope for his “concern and commitment” to the challenges facing Palestinians in the Gaza Strip.

“Unfortunately, Arab Christians, along with other religious minorities in the Middle East, are targeted for how they worship or who they are,” officials from the organization told Arab News.

“In what should be a time of celebration in Palestine, the birthplace of Christianity, Arab Christians are under constant bombardment from Israel. The historic Saint Porphyrius Church in Gaza City — one of the world’s oldest Christian churches — was bombed on Oct. 19, 2023, killing 18 displaced civilians sheltering inside. Many Christians have sought refuge in the few remaining churches, relying on them for basic necessities and a measure of safety.

“Before the genocide, Gaza’s Christian population numbered around 2,000, mostly Greek Orthodox. Sadly, that number continues to dwindle as deaths and displacement mount.

“Israel has destroyed over 200 cultural and historical sites, and more than 340 mosques — among them the iconic 700-year-old Great Omari Mosque. At least three churches have also been severely damaged, including Saint Porphyrius Church itself. At least 16 cemeteries have been desecrated. And Christians across the Middle East face similar threats, with key sites damaged in attacks that further endanger this small yet longstanding community.”

In his final days, Pope Francis consistently and forcefully called for a ceasefire in Gaza, condemned the “deplorable humanitarian situation” in the territory, and expressed his concern for the suffering of all people in the region.