By Bernard Condon
NEW YORK (AP) — The fallout from Elon Musk’s plunge into politics a year ago remains hammering his Tesla business as both sales and profits fell sharply again in the latest quarter.
The car company, which has faced boycotts, said its profits fell by 16% in the three months leading up to June on Wednesday as revenues fell by 12% and buyers continued to leave.
“The perception of its CEO Elon Musk has rubbed the sheen from the once beloved and rising car brand,” wrote Forrester analyst Dipanjan Chatterjee in an email. Tesla is a “toxic brand that is inseparable from leaders.”
Quarterly profits for electric vehicles, batteries and robotics companies fell from $1.4 billion, or 40 cents per share, to 33 cents per share, or 33 cents per share. It was the third quarter when profits fell. On an adjusted basis, the company said it scored 40 cents per share, matching Wall Street estimates.
Over the April-June period, revenues fell from $25.5 billion to $22.5 billion, slightly surpassing Wall Street’s forecast.
Tesla stocks changed little in after-hours trading as investors waited for Musk to hear from the company’s revenue call in the late afternoon.
Musk, who has supported President Donald Trump’s large-scale campaign donation and then led his Doge cost-cutting program, has given him less futures on car sales and more locked in Robotaxis, automated driving software and robotics. However, these companies have not yet taken off, and the second quarter revealed a gap between promise and profits.
The big challenge is potential buyers not only the US but also Europe still eschews Teslas from buying it. Musk alienated many people in the car markets in Britain, France, Germany and elsewhere by accepting far-right candidates for continental duties. Rival electric car makers such as China’s BYD and Germany’s Volkswagen have also been struggling with weaknesses and stealing market share.
Tesla has begun rolling out its paid pickup Robotaxi service in Austin, Texas, and hopes to soon introduce driverless cabs in several other cities.
Original issue: July 23, 2025, 5:29pm EDT
