Tesla reports sales miss as auto revenue drops for second straight quarter
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Tesla reports sales miss as auto revenue drops for second straight quarter

Why This Matters

Tesla’s second quarter earnings call comes as Elon Musk’s automaker tries to revitalize EV sales and turn its robotaxis into moneymakers.

July 23, 2025
08:30 PM
4 min read
AI Enhanced

Market analysis reveals What's particularly noteworthy is From an analytical perspective, Elon Musk’s automaker has been ceding market to companies with more affordable EVs.

The company reported a second straight quarter of year-over-year revenue declines. Tesla s are down 18% this year, the worst performance among 's megacaps.

In this articleTSLA your favorite stocksCREATE FREE ACCOUNTElon Musk, CEO of SpaceX and Tesla, attends the Viva nology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023, amid market uncertainty.

Gonzalo Fuentes | ReutersTesla reported a 16% decline in automotive revenue, as sales fell for a second straight quarter and again trailed analysts' estimates.

Here's how the company did, compared with estimates from analysts polled by LSEG:Earnings per : 40 cents adjusted vs 43 centsRevenue: $22 (which is quite significant).

On the other hand, 50 billion vs, considering recent developments. 74 billionAuto revenue for Tesla came in at $16 (something worth watching) (noteworthy indeed), given the current landscape.

Furthermore, 7 billion in the second quarter, down from $19. 9 billion in the same quarter last year.

Of that sum, revenue from sales of auto regulatory credits declined to $439 million from $890 million a year earlier.

In early July, Tesla reported a 14% year-over-year slide in vehicle deries to 384,000 for the second quarter.

Moreover, Deries are the closest apximation of EV sales reported by Tesla but aren't precisely defined in its holder communications.

On the other hand, Tesla's slump this year is partly due to a backlash against the company in the U.

And Europe, after CEO Elon Musk spent heavily to help reelect President Donald Trump, endorsed Germany's extreme anti-immigrant AfD party, and then led the Trump administration's Department of Government Efficiency.

Additionally, At DOGE, Musk helped to slash the federal workforce, roll back regulations, and eliminate USAID.

Read more CNBC Tesla coverageTesla reports first-ever drop in annual deriesChina's electric car boom is increasingly more hybridsWhat Elon Musk said tariffs and their potential effect on TeslaHow Tesla lost some of its biggest fansIn its holder deck, Tesla said it began its "first builds of a more affordable model in June, with volume duction planned for the second half of 2025 (noteworthy indeed).

Furthermore, "Tesla has put off the duction of a less pricey "model 2" EV, while other automakers are now offering a greater variety of vehicles, and China-based competitors are selling affordable EVs with high- self-driving features as a standard rather than premium option, in this volatile climate.

Tesla s are down 18% for the year, the worst performance among 's megacaps, and was down slightly in ext trading on Wednesday. This analysis suggests that Nasdaq is up 9% in 2025.

On the other hand, Musk has tried to keep fans and investors focused on Tesla's future, which he envisions as being dominated by the company's robotaxis, and humanoid Optimus robots (something worth watching).

Musk sees Tesla's robotaxis as working for their owners, making them money while they sleep.

Optimus robots, he says, will be so sophisticated they can serve as factory workers or babysitters, in today's market environment.

In June, Tesla began testing a robotaxi service in Austin, Texas, which operates in a limited area with a human valet on board.

The service is accessible only to select riders, generally Tesla and Musk enthusiasts.

Moreover, "We will further imve and expand the service (more vehicles covering a larger area, eventually without a safety rider) while testing in other U.

Cities in anticipation of additional launches," Tesla said in the holder deck, reiterating prior statements.

The company is way behind Alphabet's Waymo, which has commercial robotaxi services running in several U. , including Austin.

Tesla's robotaxi rollout is seen by bulls as a positive sign for the company, but Bank of America analysts cautioned in a recent report that it would have "immaterial financial ramifications" in the near term.

Additionally, Company executives will host an earnings call with analysts at 5:30 p.

Additionally, WATCH: Elon Musk can't continue to go down this political pathwatch now3:4903:49Elon Musk can't continue to go down this political path, says Wedbush's Dan IvesThe Exchange.

FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • The Federal Reserve's actions could influence market sentiment across sectors
  • Earnings performance can signal broader sector health and future investment opportunities
  • tesla's actions could set precedents for similar companies in the sector

Questions to Consider

  • How might the Fed's policy stance affect borrowing costs and economic growth?
  • Could this earnings performance indicate broader sector trends or company-specific factors?
  • Will tesla's actions influence how similar companies approach their business strategies?

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