Tesla (TSLA) reported a slight earnings and revenue miss in the second quarter, but said its “more affordable” model was still slated for production in the second half of 2025.

Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion (per Bloomberg consensus), a 12% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted EPS of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected.

Of particular interest, Tesla’s revenue from the sale of regulatory credits tell to $439 million from $890 million a year earlier, and will continue to drop following passage of the “One Big Beautiful Bill” (OBBB).

“We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025,” the company said in a statement. Tesla also said its purpose-built robotaxi was still scheduled for volume production starting in 2026.

Tesla stock was volatile in after-hours trading and slipping during the company’s earnings call.

CFO Vaibhav Taneja said on the call that the OBBB recently passed by Congress would affect Tesla’s business, and would pull forward sales ahead of the $7,500 tax credit expiring at the end of Q3.

“Given the abrupt change, we have limited supply of vehicles in the U.S. this quarter,” Taneja said. “We may not be able to guarantee delivery orders placed in the later part of August and beyond.”

Taneja also said Tesla would ramp up volume production of the upcoming affordable model once the EV tax credit expired.

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A year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year.

There has been no indication or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla’s cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives.

Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming.

Musk said the company would expand testing to the San Francisco Bay Area, but reports suggest the applications for those state permits have not been submitted. Separately, Bloomberg reported on Wednesday that Tesla was in talks with Nevada officials to test the company’s robotaxi service.

A driverless Tesla robotaxi, a ride-booking service, moves through traffic on June 22 in Austin, Texas. (AP Photo/Eric Gay) · ASSOCIATED PRESS

Tesla’s second quarter earnings report comes at a time when the S&P 500 (^GSPC) and Nasdaq (^IXIC) are surging to new highs, bucking Trump’s tariff war that led to broad-based selling and fears of a global economic slowdown.