downturn continues after Musk White House exit

Tesla Empire’s financial situation, while the benefits continue from the CEO Elon Musk policy.

The electric car manufacturer said on Wednesday that income and profits fell in the second quarter of the year compared to the previous year. This is the second report on the negative profits of the company, which has undergone damage to its brand and has become a lightning rod for street demonstrations.

While Tesla is still the n ° 1 seller of electric vehicles in the United States by a large margin, the gains report shows a situation of deterioration without obvious rapid solution for Musk, the richest person in the world.

Revenues were $ 22.5 billion for the three months ending on June 30, down 12% compared to the previous year, while the profits were 40 cents per share, down 23% compared to the previous year.

Tesla declared in a note to investors that the quarter was a “founding point in the history of Tesla: the beginning of our transition from the management of the electric vehicle and the renewable energies industries to also become a leader in AI, robotics and related services.”

Musk has angry people through the political spectrum this year, first with his embrace of far -right politics and his mandate brandishing the chainsaw as adviser to President Donald Trump, then when he and Trump had a high -level fall. Musk has promised to create a political party but has so far not followed visible.

The report on the results covers Tesla’s finances for April, May and June – a period overlapping Musk’s mandate in the White House. Musk left his job of the government on May 30.

Tesla’s actions were stated in working hours after the opening hours immediately after the profits report.

Tesla had already warned this month that vehicle deliveries were busy, down 14% in the second quarter compared to the previous year. It was the second consecutive quarter of the fall in deliveries, while Tesla faces damage to its brand, but also in growing competition, including manufacturers of Chinese electric vehicles.

Musk has tried to keep the shareholders satisfied with developments on other fronts, in particular by trying to launch a Robotaxi service emerging in Austin, Texas, although this service is small and still uses human security observers in vehicles. Musk has also demonstrated humanoid assistants as a potential future Tesla product, but none have been shipped. Tesla opened a restaurant and a drive-in on Monday in West Hollywood, California.

Musk companies are also increasingly linked. He merged his application on social networks, X, with his startup AI, XAI, in March, and his rocket company, SpaceX, is an investor in XAI. This month, Tesla began to join the Xai chatbot, Grok, in Tesla vehicles, a few days after Grok did neonazi tirades. Musk said that even if he does not support the merger of Tesla and Xai, he will put a potential investment in Tesla in the company for a shareholder vote.

Wall Street analysts expected Tesla income of $ 22.74 billion and a profit per share of 43 cents, according to an average of the estimates compiled by LSEG.

Tesla leaders, including Musk, should hold a conference call with analysts at 5.30 p.m. to discuss financial results and their prospects.

Musk is deeply unpopular to the American public, 58% having an unfavorable vision of him and 33% having a favorable vision, according to an average survey led by the statistics writer Nate Silver.

And other protests are on the horizon. Tesla’s demonstrations at withdrawal continue to occur every week, and more than 30 “Tesla Takedown” events are scheduled for this weekend, according to a public annex to events. A demonstration is scheduled for the newly open diner Diner on Saturday.

Tesla Takedown, an organization behind many events, took note of poor financial results on Wednesday and said that the company was overvalued.

“Sooner or later, investors will wake up in truth: Tesla is nothing more than smoke, mirrors and missed deadlines,” the group said in a statement sent by e-mail.

Tesla is also faced with legal and regulatory opposite winds. In Miami and Oakland, California, two separate legal proceedings examine if Tesla has overestimated the capacities of its driver software, which the company calls the automatic pilot and complete self-control.

Federal regulators of the National Highway Traffic Safety Administration are also investigating the complete autonomous systems of Tesla and if they are sure to use in fog and other situations with reduced visibility.