Elon Musk has warned that Tesla faces “a few rough quarters” ahead as the electric carmaker reported its steepest revenue decline in over a decade, missing Wall Street forecasts and rattling investors already uneasy about demand, tariffs, and political uncertainty.
Shares in Tesla fell 4 per cent in after-hours trading after the company revealed that second-quarter revenue dropped 12 per cent year-on-year to $22.5 billion, falling short of the $22.7 billion analysts had expected. Net income declined 16 per cent to $1.2 billion during the same period.
Speaking on an earnings call, Musk described the current landscape as a “weird transition period” shaped by the end of US EV tax incentives, Trump’s shifting trade policies, and growing regulatory uncertainty around autonomous vehicles.
“Does that mean we could have a few rough quarters? Yeah, we probably could,” Musk told analysts. “It’s not guaranteed, but plausible.”
Despite a 50 per cent rally since April, Tesla’s share price remains down 12 per cent year-to-date, weighed down by slowing electric vehicle demand, intensified competition in China, and Musk’s high-profile exit from Trump’s administration in May.
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