Tesla’s Earnings Miss Estimates as Gross sales Maintain Falling

Tesla (TSLA) posted second-quarter earnings that missed analysts’ expectations as gross sales fell for the second straight quarter.

The electrical automobile maker reported adjusted earnings per share of $0.40 on income that fell 12% year-over-year to $22.5 billion, under estimates compiled by Seen Alpha.

CEO Elon Musk advised traders on Tesla’s earnings name that the corporate may even have a “few tough quarters” forward with EV credit within the U.S. set to run out after the passage of the “One Large Stunning Invoice” signed by President Trump earlier this month.

“We now have near-term challenges in our enterprise because of the adverse impacts of the invoice and tariffs,” Tesla CFO Vaibhav Taneja mentioned. “Nevertheless, the investments that now we have made for AI, robotics, and our lead in vitality, units us up for a vibrant future.”

Shares of Tesla dropped shut to five% in prolonged buying and selling following the feedback. They’ve misplaced practically a fifth of their worth in 2025 by Wednesday’s shut.

New Automobile Plans Are Nonetheless on Observe, Musk Says

Musk mentioned the EV maker stays on schedule with plans to launch new automobiles this 12 months, together with manufacturing of a extra reasonably priced mannequin. Tesla mentioned it plans to scale manufacturing of the yet-to-be-announced automobile within the second half of this 12 months.

Musk additionally advised traders extra particulars on Tesla’s AI plans, and Optimus humanoid robotic would come at its shareholder assembly in November.

Forward of Wednesday’s earnings name, bullish analysts at Wedbush recommended they’d be extra centered on Tesla’s potential in self-driving software program, robotics, and AI than its short-term gross sales outcomes.

Final quarter, Tesla’s outcomes fell wanting estimates, however shares rose within the days that adopted as CEO Elon Musk mentioned he would spend extra time at Tesla as he left his position with the Trump administration in Could. Within the months since, Musk has distanced himself from Trump as he attacked the president’s tax and spending regulation, and Trump fired again together with his personal criticisms of Musk.

Tech large and fellow Magnificent Seven member Google father or mother Alphabet (GOOGL) reported after the bell Wednesday as nicely, with outcomes that topped expectations, pushed by rising cloud and search gross sales. It is a key competitor for Tesla within the robotaxi house, with Musk calling out Alphabet’s Waymo throughout Wednesday’s name. Tesla is “a lot better than Google” at real-world AI, Musk mentioned.

This text has been up to date because it was first revealed to incorporate further data and replicate newer share worth values.