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

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

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

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

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