Tesla reported another disappointing quarter Wednesday, with both revenue and profits falling year-over-year in Q2 2025, underscoring continued financial and reputational challenges facing the electric vehicle giant following CEO Elon Musk’s high-profile political involvement.
Revenue came in at $22.5 billion for the three months ending June 30, down 12% from a year ago, while earnings fell 23% to 40 cents per share. This marks Tesla’s second consecutive quarterly miss and coincides with growing brand backlash, street protests, and intensifying EV competition. “I don’t think anyone was expecting a change to that 2025 capex guide,” said Dave Wagner, portfolio manager at Aptus Capital Advisors. “Google had an amazing quarter. It was an easy beat, and it was just offset by this $10-billion increase in capex.”
Though still the top EV seller in the U.S., Tesla is struggling to maintain momentum. Deliveries dropped 14% in the quarter, and efforts to reassure shareholders with side ventures — like a small robotaxi pilot in Austin and a new Tesla Diner in West Hollywood — have yet to bear fruit. Musk has also teased humanoid robots, though none have reached market.
Tesla’s Q2 filing described the period as “a seminal point in Tesla’s history: the beginning of our transition from leading the electric vehicle and renewable energy industries to also becoming a leader in AI, robotics and related services.”
Musk, who served as an adviser to President Donald Trump before their May 30 split, has stirred backlash across the political spectrum. His embrace of far-right politics and failed attempt to start a new political party have only added to the company’s volatile public image.
Shares were flat in after-hours trading after the earnings release, which came shortly before a scheduled analyst call. Wall Street had expected revenue of $22.74 billion and earnings of 43 cents per share, per LSEG data.
Protests continue to mount. The activist group Tesla Takedown, which has organized weekly demonstrations, responded to the results by calling the company “overvalued.” “Sooner or later, investors will wake up to the truth: Tesla is nothing but smoke, mirrors, and missed deadlines,” the group said in a statement.
Legal pressure is also growing. Investigations in Miami and Oakland are probing whether Tesla misrepresented the capabilities of its Autopilot and Full Self-Driving systems. At the federal level, the National Highway Traffic Safety Administration is examining whether Tesla’s FSD tech is safe under conditions like fog and low visibility.
Musk’s broader business empire is also becoming increasingly intertwined. In March, he merged his social media platform X with his AI company xAI, and SpaceX has invested in xAI as well. Earlier this month, Tesla began integrating xAI’s chatbot, Grok — which recently made headlines for neo-Nazi comments — into its vehicles. Musk has said he will let shareholders vote on any Tesla investment in xAI but currently opposes a full merger.
Polling reflects a significant shift in public sentiment toward Musk, with 58% of Americans viewing him unfavorably versus just 33% who hold a favorable view, according to data compiled by statistics analyst Nate Silver.
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