Tesla (TSLA) Q2 2025 earnings report

Tesla reported a 16% decline in automotive revenue, as sales fell for a second straight quarter and again trailed analysts’ estimates.

Here’s how the company did, compared with estimates from analysts polled by LSEG:

• Earnings per share: 40 cents adjusted vs 43 cents
• Revenue: $22.50 billion vs. $22.74 billion

Auto revenue for Tesla came in at $16.7 billion in the second quarter, down from $19.9 billion in the same quarter last year. Of that sum, revenue from sales of auto regulatory credits declined to $439 million from $890 million a year earlier.

In early July, Tesla reported a 14% year-over-year slide in vehicle deliveries to 384,000 for the second quarter. Deliveries are the closest approximation of EV sales reported by Tesla but aren’t precisely defined in its shareholder communications.

Tesla’s slump this year is partly due to a backlash against the company in the U.S. 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. At DOGE, Musk helped to slash the federal workforce, roll back regulations, and eliminate USAID.

In its shareholder deck, Tesla said it began its “first builds of a more affordable model in June, with volume production planned for the second half of 2025.”

Tesla has put off the production 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-tech self-driving features as a standard rather than premium option.

Tesla shares are down about 18% for the year, the worst performance among tech’s megacaps. The Nasdaq is up about 9% in 2025.

Company executives will host an earnings call with analysts at 5:30 p.m. ET.

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