“Tesla posted its steepest quarterly drop in revenue in more than a decade, shedding light on the speed at which the electric-car maker is burning through cash and prompting fresh questions about the company’s future and whether its leader, Elon Musk, should bring in some more grown-ups. The leader in electric vehicles recorded $22.5 billion in revenue between April and June 2025, an 11.9% decrease from the $25.5 billion it made during the same time the previous year.
The biggest hit was in Tesla’s car sales, which fell 16%. The company also disclosed earlier this month that deliveries of its vehicles had fallen 14 percent in the second quarter, an indication that demand was faltering. Tesla saw its revenue fall for the second straight quarter, continuing a downward trend in its financial performance.
And analysts say Tesla’s dip might not last long, especially as it looks to expand to the robotaxi market. Yet people are becoming increasingly wary of CEO Elon Musk’s willingness to take public stances on politics.
Elon Musk’s public support for far-right leaders in Europe, especially Germany’s AfD party, has damaged Tesla’s brand image in several important European markets. This has negatively affected the brand’s reputation among European customers.
On top of that, several senior executives have recently resigned, including a close aide of Musk who was in charge of sales and production in North America and Europe. These high-level departures have added to the sense of uncertainty and unrest within the company.
So far, though it recently released a freshened version of its hot-selling Model Y sport utility vehicle, and the maneuver has yet to set off a sales surge as hoped. Now, investors are left waiting to find out whether Musk’s promised focus on Tesla — and robotaxis — will be enough to right the ship.”
