Tesla Set to Release Q2 Earnings Amid Revenue Slide, EV Market Pressure

Tesla is preparing to report its second-quarter financial results following the close of trading on Wednesday, with Wall Street bracing for another dip in revenue and continued signs of market share erosion.

Analysts anticipate earnings of 43 cents per share on revenue of $22.74 billion, based on LSEG estimates. That revenue figure would represent an 11% decline from the same quarter last year, following a 14% drop in vehicle deliveries to 384,000 units earlier this month.

Deliveries are Tesla’s closest approximation of EV sales, though the company does not define them precisely.

The company has been grappling with intensified competition from both U.S. and international automakers, particularly in the affordable EV segment. General Motors, for example, saw a 111% year-over-year jump in U.S. EV sales during the quarter, totaling nearly 46,300 units—narrowing the gap with Tesla.

Tesla’s year-to-date stock performance reflects these challenges. Shares have declined about 17%, underperforming other large-cap tech peers, while the broader Nasdaq has climbed over 8% in 2025.

In addition to business pressures, CEO Elon Musk’s recent political involvement has sparked controversy. His public support for contentious political figures and policies has raised concerns among investors and consumers, especially in Europe and the U.S. Musk has also launched a new political initiative, The America Party, following his departure from a federal government advisory role earlier this year.

Tesla has delayed the launch of its long-awaited budget-friendly “Model 2,” while competitors—especially those based in China—are flooding the market with tech-laden, lower-cost EVs. At the same time, Musk continues to tout the company's future in robotics and autonomous driving.

Tesla recently debuted a robotaxi trial in Austin, Texas, operating in a limited area with a human attendant onboard. The company also unveiled a themed diner and charging station in Los Angeles, where Optimus robots are displayed performing simple tasks like scooping popcorn. While these innovations have stirred excitement among fans, analysts have expressed skepticism about their near-term financial impact.

Regulatory scrutiny is also mounting. The National Highway Traffic Safety Administration has requested information regarding a series of traffic incidents involving Tesla’s autonomous vehicles, including one that scraped a parked car and another that briefly veered into oncoming traffic.

Investors will be closely watching Wednesday’s earnings call for updates on the company’s self-driving technology, plans for a more affordable EV model, and its strategy to navigate trade barriers and changing government incentives.

The call is scheduled for 5:30 p.m. ET.

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