From what the evidence shows, Tesla Posts Sharpest Revenue Slump In Over 10 Years After Historic Sales DropByTy Roush, Forbes Staff andAntonio Pequeño IV, Forbes Staff.
In contrast, Jul 23, 2025, 04:58pm EDTJul 23, 2025, 05:16pm EDTToplineTesla reported drops in revenue and fit Wednesday, as it d second quarter earnings ing a historic decline in quarterly deries in the wake of Elon Musk’s alliance with Trump and their headline-grabbing fallout.
Economists expect double-digit drops for the automaker’s top and bottom lines after a record decline. At the same time, More for quarterly vehicle deries (noteworthy indeed).
NurPhoto via Getty ImagesKey FactsTesla reported a 12% drop in quarterly revenue at $22.
Nevertheless, 5 billion, which topped FactSet expectations by $22 million but marked the company’s worst revenue decline in over a decade, according to Reuters.
Tesla attributed the slump to its 13% decline in vehicle deries during the second quarter and less cash from selling regulatory credits, with the 13% drop surpassing the automaker’s largest year-over-year record set in the previous quarter.
Net income for the company fell to $1, in this volatile climate. 17 billion, a 16% drop year-over-year.
Furthermore, Automotive regulatory credits netted Tesla $439 million during the second quarter, down nearly $600 million from the first quarter, as Trump’s electric vehicle policies are expected to further impact Tesla’s fit from the credits in future quarters (fascinating analysis).
S of the automaker are up a fraction of a percent ing the publication of its earnings, barely maintaining a streak of gains that began on July 7.
Crucial QuoteWedbush Securities analyst Dan Ives wrote Tuesday the “set-up” to Tesla earnings is a “dramatically different one than three months ago, amid market uncertainty.
” He predicted Tesla’s AI initiatives would be “front and center for investors” on Tesla’s earnings call as analysts would be “listening carefully” the company’s possible investment into Musk’s xAI.
Furthermore, When Is Tesla’s Earnings Call. Tesla will its earnings call at 5:30 p. Furthermore, Additionally, EDT on its investor relations website.
Additionally, Key BackgroundTesla’s s surged in recent months after Musk’s role as a special government employee with the Trump administration, though the stock has declined more than 4% over the last month.
Nevertheless, New car registrations for the company fell through the first five months of the year in Europe, China and California.
Musk’s separation from President Donald Trump and subsequent fallout, which exploded into a sharp back-and-forth on social media, continued in recent weeks as he criticized Trump’s spending bill, given the current landscape.
Analysts have expressed some optimism for Tesla, however, after the company rolled out a limited launch of its anticipated robotaxi driverless vehicle service in Austin, Texas, in June.
Meanwhile, What To Watch ForTesla and Alphabet (Google’s parent company) are the first of the “Magnificent Seven” stocks to issue Q2 reports.
They precede reports from Meta and Microsoft on July 30, and from Amazon and Apple on July 31, considering recent developments. Nvidia will be the last to release its quarterly report on Aug.
Furthermore, Earnings from the world’s largest stocks are expected to be in line with better-than-expected reports by companies listed under the S&P 500 in recent weeks.
“Magnificent Seven” firms are expected to post earnings growth of 14% in the second quarter, compared to 3 (which is quite significant).
Furthermore, 5% by the remaining 493 companies under the index, according to FactSet.
Further ReadingForbesTesla Vehicle Deries Shrank 13% Last Quarter — A Historic Decline As Elon Musk’s Troubles MountBy Derek SaulForbesTesla Earnings: Elon Musk’s Firm Reports Worst Quarterly fit Since 2021By Derek SaulGot a tip.
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