TSLA Stock – Tesla Reports Q2 Sales Miss as Auto Revenue Declines Again

Tesla’s Financial Struggles Continue Amid Declining Auto Sales

Tesla (NASDAQ: TSLA) reported another disappointing quarter, with automotive revenue dropping 16% year-over-year, marking the second consecutive quarter of declining sales. The electric vehicle (EV) giant fell short of Wall Street expectations, raising concerns about its growth trajectory and TSLA stock performance.

Key Q2 Earnings Highlights

Here’s how Tesla performed compared to analysts’ estimates (LSEG data):

• Earnings per share (adjusted): 40 cents vs. 43 cents expected
• Revenue: $22.50 billion vs. $22.74 billion expected
• Automotive revenue: $16.7 billion (down from $19.9 billion in Q2 2023)
• Regulatory credits revenue: $439 million (down from $890 million a year ago)

Declining Deliveries & Market Challenges

Tesla’s vehicle deliveries fell 14% year-over-year to 384,000 in Q2, reflecting weakening demand. The company has faced multiple headwinds, including:

• Backlash in the U.S. and Europe due to CEO Elon Musk’s political activities, including his support for former President Donald Trump and Germany’s far-right AfD party.
• Increased competition from Chinese EV makers offering cheaper, high-tech models with advanced self-driving features.
• Delayed production of Tesla’s affordable “Model 2,” while rivals expand their EV lineups.

Robotaxis & Optimus: Musk’s Vision for Tesla’s Future

Despite financial struggles, Musk is steering investor focus toward Tesla’s long-term ambitions:

• Robotaxis: Tesla began testing a limited robotaxi service in Austin, Texas, with plans to expand. However, it lags behind Alphabet’s Waymo, which already operates commercial robotaxis in multiple U.S. cities.
• Optimus Humanoid Robots: Musk claims these robots will eventually work in factories or even as babysitters, though commercialization remains years away.

Bank of America analysts remain skeptical, stating that Tesla’s robotaxi efforts will have “immaterial financial impact” in the near term.

TSLA Stock Performance & Market Outlook

• TSLA stock is down ~18% YTD, making it the worst performer among tech megacaps.
• Nasdaq is up ~9% in 2025, highlighting Tesla’s underperformance.

What’s Next for Tesla?

Tesla plans to ramp up production of a more affordable EV model in late 2025, but delays and competition remain key risks. Investors await further details from Tesla’s earnings call at 5:30 p.m. ET.

Final Thoughts: Is TSLA Stock a Buy?

While Tesla’s long-term vision (robotaxis, AI, robotics) is ambitious, near-term challenges in auto sales and profitability could keep TSLA stock under pressure. Investors should watch for:

• Delivery recovery in Q3/Q4
• Progress on affordable EV models
• Regulatory approvals for robotaxis

For now, Tesla remains a high-risk, high-reward play in the EV and AI space. Stay tuned for updates on TSLA stock as the market digests these earnings.