Tesla’s shares plummeted nearly 7 percent in premarket trading on Thursday as the EV giant contends with declining sales and increasing doubts about its future under CEO Elon Musk, heightening investor anxiety following another tumultuous quarter.Â
Auto revenue for Tesla reached $16.7 billion in the second quarter, a decrease from $19.9 billion during the same period last year. This figure includes a drop in revenue from sales of auto regulatory credits, which fell to $439 million from $890 million a year prior.
In early July, Tesla announced a 14 percent year-over-year decline in vehicle deliveries, totaling 384,000 for the second quarter. Deliveries serve as the closest approximation of EV sales reported by Tesla, though they are not explicitly defined in its shareholder communications.
Net income for the second quarter decreased to $1.17 billion, or 33 cents per share, down from $1.4 billion, or 40 cents per share, a year earlier.
Musk cautioned of “a few rough quarters” ahead for Tesla, as reductions in U.S. EV incentives exacerbate its challenges. The automaker disclosed one of its toughest quarters in over a decade, characterized by a second consecutive revenue decline.
This situation unfolds amid dwindling EV sales and tariff pressures. Tesla is developing a more affordable model, but Chief Financial Officer Vaibhav Taneja indicated that production would scale up next quarter, at a slower pace than previously anticipated. The company did not provide an update on its annual deliveries forecast, citing economic conditions and uncertainties surrounding its rollout plans.
The company‘s trillion-dollar valuation relies heavily on its robotaxi aspirations, a limited trial of which commenced in Austin, Texas, last month with approximately a dozen Model Y SUVs, alongside its initiative to construct humanoid robots.
Read more: Tesla stock tumbles after earnings report reveals 71 percent net income decline
Model Y update fails to boost sales
Despite a recent update for its flagship Model Y, Tesla’s aging lineup is under pressure from a surge of low-cost EV competitors, particularly in China, and ongoing backlash regarding Elon Musk’s far-right political views. Tesla’s stock has dropped roughly 18 percent this year, making it the worst performer among the “Magnificent Seven” stocks.
U.S. electric vehicle manufacturer Tesla lost market share in Europe for the sixth consecutive month in June, as reported by the European Automobile Manufacturers Association (ACEA), amid a broader regional decline in new car sales. Data released on Thursday by ACEA, an industry advocacy group, revealed that Tesla’s market share in the European Union, Britain, and the European Free Trade Association decreased to 2.8 percent in June, down from 3.4 percent last year.
In the meantime, Tesla’s new car registrations fell to 34,781 units in June, representing a 22.9 percent decline compared to the same month in 2024.
