Elon Musk’s Tesla reported a 16 percent decline in automotive revenue as sales fell for a second straight quarter and again failed to meet analysts’ estimates. The stock is down more than nine percent in morning trading.
CNBC reports that Elon Musk’s Tesla has reported disappointing sales figures for the second consecutive quarter. The company’s automotive revenue took a significant hit, declining by 16 percent compared to the same period last year. This drop in sales has caused Tesla to miss analysts’ estimates once again, raising concerns about the company’s performance and market position.
According to the financial results released by Tesla, the company’s automotive revenue stood at $16.7 billion in the second quarter of 2025, a substantial decrease from the $19.9 billion reported in the corresponding quarter of the previous year. This decline in revenue can be attributed to a combination of factors, including increased competition in the electric vehicle market and a shift in consumer preferences.
Tesla’s deliveries, which serve as a proxy for sales, also experienced a year-over-year decline of 14 percent, with the company delivering 384,000 vehicles in the second quarter. This figure falls short of analysts’ expectations and indicates a slowdown in demand for Tesla’s electric cars.
As Breitbart News previously reported, Cybertruck sales have tumbled by 51 percent in the quarter:
Tesla refuses to publish detailed sales figures, which may be an attempt to conceal the extent of the electric pickup’s lackluster performance. The Cybertruck’s poor performance comes from research by Cox Automotive, a reliable industry tracking service. The 51 percent year-on-year decline in Q2 sales is a clear indication that the Cybertruck has failed to live up to expectations and is facing an uphill battle in the competitive electric vehicle market.
The company’s shares have been under pressure this year, with a year-to-date decline of approximately 18 percent, making it the worst-performing stock among tech’s megacaps. In contrast, the Nasdaq has seen a 9 percent increase over the same period. Shares are down more than nine percent today in response to the company’s dismal earnings report.
During the earnings call, Tesla CFO Vaibhav Taneja, expressed concerns about the impact of recent legislative changes on the company’s business. The expiration of the federal $7,500 EV tax credit at the end of September is expected to affect Tesla’s sales in the coming months. Taneja stated, “Given the abrupt change, we have limited supply of vehicles in the U.S. this quarter. We may not be able to guarantee delivery orders placed in the later part of August and beyond.”
Tesla has also been grappling with supply chain challenges and has made adjustments to deal with tariffs imposed by the Trump administration. These factors have contributed to the company’s recent struggles and have forced it to reevaluate its strategies.
Despite the disappointing sales figures, Tesla remains optimistic about its future prospects. The company has announced that it began the first builds of a more affordable model in June, with volume production planned for the second half of 2025. This move is seen as an attempt to regain market share and appeal to a wider customer base, as competitors have been offering a greater variety of electric vehicles at more affordable price points.
Tesla’s future plans also revolve around its robotaxi service and the development of humanoid Optimus robots. The company has been testing a limited robotaxi service in Austin, Texas, with plans to expand to other U.S. cities pending regulatory approvals. However, Tesla faces stiff competition from companies like Alphabet’s Waymo, which already has commercial robotaxi services running in several U.S. markets.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
