Tesla reports declines in revenue and profit amid shaky financial year | US news

It was a difficult year for Tesla’s financial prospects. The manufacturer of electric vehicles has once led the gas -free cars market, but recently faced a stock, steep competition and a CEO which has been described as erratic and a manufacturer of chaos. Now, for its second quarter income, Tesla reports a drop in income and profits.

The manufacturer of electric vehicles said he saw a 12% drop in income from the same time last year, to $ 22.5 billion, which was below Wall Street expectations $ 22.7 billion. Tesla noted that its operating income has also decreased to $ 0.9 billion, a drop of 42% since last year. This marks a second quarterly decrease consecutive to the company.

Tesla’s shares dropped approximately 1% after trade after hours. Throughout 2025, the company The shares were fidget with, from the year at a level higher of $ 428 per share in January, then falling from almost half to $ 222 per share in March. Tesla’s global stock dropped by almost 13% this year.

Tesla claims that the lower financial agents to have it reported on Wednesday are due to a drop in vehicle deliveries, a drop in regulatory credit income and a reduction in the average selling price of its cars.

Earlier this month, Tesla published data on its vehicle deliveries and showed a drop of 14% compared to last year. Industry data shows that in California, registrations for business cars have dropped for seven consecutive quarters, with a drop of 21.1% in the second quarter. In Europe, sales of new Tesla cars fell 27.9% in May compared to the previous year. This was contrasting strongly with other manufacturers of electric vehicles, who have led to sales in the past year.

Tesla’s volatility was partially attributed to the role of CEO Elon Musk in the administration of Donald Trump as a de facto chief of the so-called “Department of Government Effectiveness” (DOGE). At DOGE, Musk led the accusation to reduce the federal government, to get rid of various agencies and to institute layoffs in almost all the departments. This sparked mass demonstrations across the country against Tesla and asks to boycott the company.

At the beginning of June, when Musk was to leave his role as employee of the special government, the relationship between the CEO and the President had faded, leading to a spectacular explosion between the two men. They launched insults on each other on social networks and, once again, Tesla’s stock plunged.

“The Tesla brand is attacked and provides an excellent example of negative friction on the brand – the perception of Elon Musk, its managing director, rubbed the brilliant straight from what was formerly a pampering brand and automotivein,” said Dipanjan Chatterjee, main analyst for Forrester. “This constitutes an important threat to the growth of Tesla, because the main parts of the prospect pool are poisoned by what they perceive as a toxic brand inseparable from its leader.”

After the Musk and Trump quarrel, Musk said that he was going to focus on managing his businesses and began to excite the deployment of Tesla’s first driver’s first driver’s driver, Texas. The launch presented around 10 cars designated in certain areas of the city and had “safety drivers” on the front passenger seat. Although Musk has praised the launch as a success, several people have published videos on social networks showing robotaxy rolling on the wrong track, accelerating and unable to make turns on left.

Two days later, the National Highway Traffic Safety Administration (NHTSA) opened an investigation into the service and asked Tesla to provide the Agency on Information on Incidents.

During the call for Tesla’s income later Wednesday, investors will examine the dedication of musk to the company and how it will take up some of the losses of the year. The CEO, however, said that he had not finished with Washington and is now starting a new American political party called the America party.