Tesla reported a 16% decline in automotive revenue as sales fell for a second straight quarter and again trailed analysts’ estimates.
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.
Net income fell to $1.17 billion, or 33 cents per share, in the second quarter, from $1.4 billion, or 40 cents per share, a year earlier.
Tesla’s slump this year is partly due to backlash against the company in the U.S. and Europe, after 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, or DOGE. There, Musk slashed the federal workforce, rolled back regulations and eliminated the United States Agency for International Development, or USAID.
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Tesla has to this point put off the production of a less pricey “model 2” EV. Meanwhile, 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.
In Tesla’s services and other segment, which includes revenue from its EV charging stations, gross profit rose 17% year over year. Tesla said it was driven by “improved Supercharging gross profit generation from increased volume,” and said it has added more than 2,900 net new Supercharging stalls, an 18% increase from a year earlier. The company boasts 7,377 Supercharger stations in its charging network.
