Tesla missed revenue and earnings expectations in Q2 2025 and reported another drop in vehicle deliveries — but one key area of its balance sheet remains rock solid, offering a quiet win amid the turbulence.

Tesla’s financial position is getting worse, as the fallout continues from CEO Elon Musk’s politics. The electric automaker reported Wednesday that both revenue and profits fell in the second quarter of the year compared to a year earlier.

Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world.

Tesla Inc. warned that provisions in President Donald Trump’s $3.4 trillion fiscal package will pose meaningful challenges for the EV maker in the next several months.

Tesla’s sales plunge over the last 18 months has been a stunning turn for a company that recorded only one quarterly year-over-year sales drop before 2024. And the company faces significant trouble ahead.

Tesla's registrations in the West Coast state fell more than 20% in the second quarter compared with the previous year, according to new data.

The Austin-based EV company is still working on taking safety drivers out of the passenger seats and expanding into new cities.

Tesla’s battery business has been feeling the pain, too. For a while, this was a growth area for the company, albeit one with a relatively minor contribution to the bottom line. During Q2 2025, Tesla’s energy generation and storage division brought in $2.8 billion in revenue, a 7 percent decline from the same period in 2024.