Tesla’s financial position is getting worse, as the fallout continues from CEO Elon Musk’s politics. The electric automaker reported Wednesday that both revenue and profits fell in the second quarter of the year compared to a year earlier.

Tesla has said it will build cheaper cars and win approval for its self-driving software in Europe this year, as it tries to revive its struggling business. Elon Musk's electric vehicle (EV) firm told investors it had started "first builds of a more affordable model in June" while posting a slump in car deliveries and shrinking profits.

Analysts estimate that the company earned $1.2 billion from April to June, according to Bloomberg, down from $1.4 billion a year ago. Sales are expected to have fallen to $22.6 billion from $25.5 billion in the second quarter of 2024. Tesla has not reported an increase in quarterly profit since the third quarter of 2024.

Good morning. Tesla falls short of Wall Street estimates as scandal and competition take a toll. Adani Group scraps its super app ambitions. And Nintendo’s Switch 2 notches another high score. Listen to the day’s top stories.

Tesla missed revenue and earnings expectations in Q2 2025 and reported another drop in vehicle deliveries — but one key area of its balance sheet remains rock solid, offering a quiet win amid the turbulence.

Economists expect double-digit drops for the automaker’s top and bottom lines after a record decline for quarterly vehicle deliveries.

Tesla’s battery business has been feeling the pain, too. For a while, this was a growth area for the company, albeit one with a relatively minor contribution to the bottom line. During Q2 2025, Tesla’s energy generation and storage division brought in $2.8 billion in revenue, a 7 percent decline from the same period in 2024.

Shares of the EV maker pared losses and traded close to flat in afterhours trading, following results that showed net income plunging 16% and automot

WIRED stopped by the new Tesla Diner in Hollywood to talk to people who still stan Elon Musk. “I want to go to Mars, and he is going to take us,” one visitor told us.

But even now, as Trump and Musk seemingly aren't friends anymore (for the moment), and Tesla is staring down the barrel of yet another consecutive dismal fiscal quarter, Tesla investors don't care. For them, Tesla is a future play. Tesla derived 90% of its 2024 revenue and 94% of its gross margin from auto sales.