Tesla shares fell 8% on Thursday after the company reported its second consecutive quarter of declining auto sales and missed revenue estimates, according to CNBC. Automotive revenue dropped 16% year over year to $16.7 billion, while total revenue fell 12% to $22.5 billion. CEO Elon Musk warned of “a few rough quarters” ahead, citing the end of the federal $7,500 EV tax credit in September. Vehicle deliveries dropped 14% in the second quarter to 384,000, with new registrations in Europe also falling. The company has begun limited production of a cheaper EV model and plans to ramp it up in the second half of the year to boost sales. However, the company did not provide official guidance, casting uncertainty over its 2025 growth outlook. Tesla’s stock is down 24% in 2025, making it the worst-performing tech megacap.
