Pras Subramanian · Senior ReporterUpdated Thu, Jul 24, 2025, 2:04 PM 3 min readIn This Article:Tesla (TSLA) reported a slight earnings and revenue miss in the second quarter, and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker.Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion expected (per Bloomberg consensus), a 12% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted EPS of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected.Switch Auto Insurance and Save Today!Tesla's revenue from the sale of regulatory credits fell to $439 million from $890 million a year earlier, and will continue to drop following passage of the "One Big Beautiful Bill" (OBBB), the company said. Musk spent months blasting the bill, but Trump signed it into law earlier this month.Tesla stock slumped over 6% in premarket trading on Thursday, after starting to slide during the company's earnings call.CFO Vaibhav Taneja said on the call that the OBBB recently would affect Tesla’s business, leading to a "pull forward" in sales ahead of the $7,500 tax credit expiring at the end of Q3.“Given the abrupt change, we have limited supply of vehicles in the US this quarter,” Taneja said. “We may not be able to guarantee delivery orders placed in the later part of August and beyond.”Taneja also said Tesla would ramp up volume production of an upcoming "affordable" model once the EV tax credit expired.Read more: Live coverage of corporate earningsA year ago, Tesla said in its Q2 earnings report that production remains on track for new vehicles, likely including a cheaper EV, in the first half of next year.There have been no indications or even renderings of a new vehicle, let alone production of a vehicle priced around $30,000. Tesla's cheapest EV is the rear-wheel-drive Model 3 sedan, which starts at around $43,000 without incentives."We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025," the company said in a statement. Tesla also said its purpose-built robotaxi was still scheduled for volume production starting in 2026.Tesla has expanded its robotaxi testing in Austin, Texas, with a bigger operating area and likely more vehicles coming.Musk said the company would expand testing to the San Francisco Bay Area, but reports suggest the applications for those state permits have not been submitted. Separately, Bloomberg reported on Wednesday that Tesla was in talks with Nevada officials to test the company's robotaxi service.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,403.50 +7.25 (+0.11%)Dow Futures45,033.00 -181.00 (-0.40%)Nasdaq Futures23,386.25 +75.50 (+0.32%)Russell 2000 Futures2,287.40 -7.40 (-0.32%)VIX15.22 -0.15 (-0.98%)Gold3,366.50 -31.10 (-0.92%)PortfolioSign in to access your portfolioSign inTop gainersABVX ABIVAX Société Anonyme 68.60 +58.60 (+586.00%)LBRT Liberty Energy Inc. 13.25 +2.00 (+17.78%)VICR Vicor Corporation 52.68 +7.48 (+16.55%)LW Lamb Weston Holdings, Inc. 57.19 +8.02 (+16.31%)HIMS Hims & Hers Health, Inc. 58.02 +8.01 (+16.02%)Top losersENPH Enphase Energy, Inc. 36.48 -6.02 (-14.16%)FI Fiserv, Inc. 143.00 -22.98 (-13.85%)TXN Texas Instruments Incorporated 186.25 -28.67 (-13.34%)OTIS Otis Worldwide Corporation 88.49 -12.50 (-12.38%)MARA MARA Holdings, Inc. 17.57 -2.31 (-11.62%)Most activeLCID Lucid Group, Inc. 3.0800 -0.0500 (-1.60%)NVDA NVIDIA Corporation 170.78 +3.75 (+2.25%)MARA MARA Holdings, Inc. 17.57 -2.31 (-11.62%)NIO NIO Inc. 4.9200 -0.0900 (-1.80%)WBD Warner Bros. Discovery, Inc. 13.31 +0.46 (+3.58%)Earnings eventsTrending tickersTSLA Tesla, Inc. 332.56 +0.45 (+0.14%)GOOG Alphabet Inc. 191.51 -0.60 (-0.31%)GOOGL Alphabet Inc. 190.23 -1.11 (-0.58%)CMG Chipotle Mexican Grill, Inc. 52.78 +0.40 (+0.76%)IBM International Business Machines Corporation 282.01 +0.05 (+0.02%)Top economic eventsPowered by Money.com - Yahoo may earn commission from the links above.