Tesla stock slides after earnings miss, Musk warning of ‘few rough quarters’
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Tesla stock slides after earnings miss, Musk warns of ‘few rough quarters’
Tesla reported second quarter revenue of $22.50 billion, down 12% from $25.05 billion a year ago. CEO Elon Musk hinted at a “few rough quarters” amid mounting challenges for the automaker. Tesla stock closed down 8.2% on Thursday after the company’s earnings release. The company also said its purpose-built robotaxi was still scheduled for volume production starting in 2026, with volume production planned for the second half of 2025. It is in talks with Nevada officials to test the company’s Robotaxi service, Bloomberg reported on Wednesday, but reports suggest the applications have not yet been submitted. It’s unclear if the company will expand testing to the San Francisco Bay Area.
Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion expected (per Bloomberg consensus), a 12% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected.
Tesla’s revenue from the sale of regulatory credits fell to $439 million from $890 million a year earlier, and will continue to drop following passage of the One Big Beautiful Bill Act (OBBB), the company said. Musk spent months blasting the bill, but Trump signed it into law earlier this month.
Tesla stock closed down 8.2% on Thursday.
Read more about Tesla’s stock moves and today’s market action.
CFO Vaibhav Taneja said on the earnings call that the OBBB would affect Tesla’s business, leading to a “pull forward” in 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 US this quarter,” Taneja said. “We may not be able to guarantee delivery orders placed in the later part of August and beyond.”
Musk chimed in when asked about the impact of the loss of the federal tax credit on Tesla’s business. He said Tesla “probably could have a few rough quarters” ahead following expiration of the credit, adding, “I am not saying that we will, but we could.”
Tesla said its first builds of a more affordable model occurred in June, with volume production planned for the second half of 2025. The company also said its purpose-built robotaxi was still scheduled for volume production starting in 2026.
Taneja noted that Tesla would only ramp up volume production of the upcoming “affordable” model once the EV tax credit expired.
Read more: Live coverage of corporate earnings
“We are entering a vulnerable time for Tesla, as near-term headwinds, like auto and energy demand, subsidy cuts, and tariffs, pressure financials in the crucial transition to the long-term vision of real-world AI and higher-margin products like robotaxi and optimus,” William Blair analyst Jed Dorsheimer wrote in a note to clients following Tesla’s earnings release.
Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming.
A driverless Tesla robotaxi, a ride-booking service, moves through traffic on June 22 in Austin, Texas. (AP Photo/Eric Gay) · ASSOCIATED PRESS
Earlier, 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.
Tesla stock slides after earnings miss, Musk warns of ‘few rough quarters’
Tesla reported second quarter revenue of $22.50 billion, down 12% from $25.05 billion a year ago. CEO Elon Musk hinted at a “few rough quarters” amid mounting challenges for the automaker. Tesla stock closed down 8.2% on Thursday after the company’s earnings release. The company also said its purpose-built robotaxi was still scheduled for volume production starting in 2026, with volume production planned for the second half of 2025. It is in talks with Nevada officials to test the company’s Robotaxi service, Bloomberg reported on Wednesday, but reports suggest the applications have not yet been submitted. It’s unclear if the company will expand testing to the San Francisco Bay Area.
Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion expected (per Bloomberg consensus), a 12% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected.
Tesla’s revenue from the sale of regulatory credits fell to $439 million from $890 million a year earlier, and will continue to drop following passage of the One Big Beautiful Bill Act (OBBB), the company said. Musk spent months blasting the bill, but Trump signed it into law earlier this month.
Tesla stock closed down 8.2% on Thursday.
Read more about Tesla’s stock moves and today’s market action.
CFO Vaibhav Taneja said on the earnings call that the OBBB would affect Tesla’s business, leading to a “pull forward” in 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 US this quarter,” Taneja said. “We may not be able to guarantee delivery orders placed in the later part of August and beyond.”
Musk chimed in when asked about the impact of the loss of the federal tax credit on Tesla’s business. He said Tesla “probably could have a few rough quarters” ahead following expiration of the credit, adding, “I am not saying that we will, but we could.”
Tesla said its first builds of a more affordable model occurred in June, with volume production planned for the second half of 2025. The company also said its purpose-built robotaxi was still scheduled for volume production starting in 2026.
Taneja noted that Tesla would only ramp up volume production of the upcoming “affordable” model once the EV tax credit expired.
Read more: Live coverage of corporate earnings
“We are entering a vulnerable time for Tesla, as near-term headwinds, like auto and energy demand, subsidy cuts, and tariffs, pressure financials in the crucial transition to the long-term vision of real-world AI and higher-margin products like robotaxi and optimus,” William Blair analyst Jed Dorsheimer wrote in a note to clients following Tesla’s earnings release.
Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming.
A driverless Tesla robotaxi, a ride-booking service, moves through traffic on June 22 in Austin, Texas. (AP Photo/Eric Gay) · ASSOCIATED PRESS
Earlier, 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.