Tesla reports plummeting profits

What happened

Electric vehicle maker Tesla reported Wednesday that its second-quarter revenue fell 12% and profits plunged 16% following a 13.5% drop in car deliveries.

Adjusted net income, the "measure most closely followed on Wall Street," fell by 23%, CNN said. Shares in the company, which said it had started the "first builds" of a cheaper model, have plummeted 30% since last December.

Who said what

"We probably could have a few rough quarters," CEO Elon Musk warned investors. He said President Donald Trump's tariffs had cost the company $300 million over three months.

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Tesla has "been ceding market share to companies with more affordable EVs," said CNBC. Now the company has clearly "lost confidence in vehicle delivery growth for 2025," Electrek said.

What next?

Musk plans to "greatly expand" Tesla's robotaxi service by the end of the year to boost the company's finances. But there are "more headwinds" coming in the third quarter, said The Wall Street Journal, when the $7,500 EV consumer tax credit evaporates along with "many of the valuable carbon credits paid by other car manufacturers."