Tesla Inc. reported a 16% drop in profit for the second quarter, as the electric vehicle maker struggles despite CEO Elon Musk’s pivot back to focusing on his companies.
The company’s electric vehicle sales have been declining, with a 13.5% drop compared to the same period last year. This is not surprising, given the intense competition in the EV market, particularly from traditional automakers that are gradually gaining ground on Tesla’s market dominance.
Musk has stepped away from his leadership of other ventures and has a public split with former President Donald Trump, but he remains interested in politics. The company’s brand reputation has taken a hit, particularly among liberal or Democratic car shoppers.
Tesla’s earnings report highlighted the company’s transition to AI, robotics, and related services, including the rollout of its robotaxi service and development of a humanoid robot called Optimus. However, this shift has raised concerns about the impact on the company’s core business.
The company lost three senior leaders in the last two months and faced criticism for missing its annual shareholder meeting deadline. Tesla will hold a call with investors tonight to discuss the report.
Despite these challenges, Musk’s leadership has seen a 17% increase in services revenue, which could provide some stability in the near term. However, the overall trend suggests that Tesla is still navigating significant changes and uncertainty.
Source: https://www.npr.org/2025/07/23/nx-s1-5477374/tesla-earnings-july-2025-elon-musk