Tesla shares dropped 6% in premarket trading on Thursday, according to CNBC. The company reported its second consecutive quarter of falling automotive sales and missed both revenue and earnings expectations. Tesla missed both revenue and earnings estimates in the second quarter, with automotive revenue falling 16% year-over-year to $16.7 billion. Musk said Tesla could face a few rough quarters due to the expiration of federal electric vehicle tax credits, though he emphasized it was not a certainty. Tesla faces increased pressure from lower-cost EV rivals in China and Europe, with June registrations in Europe also declining. Investors are also concerned about Musk's political activity, including his role under Trump and support for Germany’s AfD party. The company has started limited production of a more affordable model but declined to offer guidance, raising questions about Tesla’s growth outlook for 2025.
