The Austin, Texas, company said on Tuesday (Wednesday AEDT) that quarterly profits fell by 71 per cent to to $US409 million ($642 million), or 12 cents a share. That’s far below analyst estimates.

“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 stabilise 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 car makers that fall short of emission standards boosted results for the quarter.

The company generated $US595 million from credit sales, up from $US442 million a year ago.