Tesla Plunges Over 9% After Another Disappointing Revenue Report
In this context, the S&P 500 is up 0.3% at 6,377.10 points, marking a new all-time high for the 13th time this year.
Quick overview
- Tesla shares fell over 9% to $302.10 after reporting a 12% year-over-year revenue drop, its steepest decline in a decade.
- The company's Q2 revenue of $22.5 billion was below analyst expectations and marked its second consecutive quarterly revenue decline.
- CEO Elon Musk indicated that Tesla faces challenging quarters ahead due to increased price competition and public backlash.
- Despite starting production of a new low-cost model, the revenue slump has raised concerns among investors.
Tesla shares plummeted more than 9% to $302.10 on Thursday, after the electric vehicle giant reported a 12% year-over-year drop in revenue — its steepest decline in a decade. The sell-off adds to a grim 2025 performance, with the stock now down over 25% year-to-date.
The company’s Q2 revenue came in at $22.5 billion, falling short of the $22.74 billion average analyst estimate compiled by LSEG, and well below the $25.5 billion recorded in the same quarter last year.
Despite the highly anticipated refresh of its best-selling Model Y SUV, Tesla posted its second consecutive quarterly revenue drop, raising investor doubts about the company’s near-term growth prospects.
CEO Elon Musk acknowledged that Tesla faces “a few tough quarters ahead,” as the firm battles intensifying price competition in the EV market — particularly from more affordable models — and public backlash over Musk’s increasingly politicized public profile. Once aligned with former President Donald Trump, Musk has since distanced himself from the administration.
While Tesla did reveal it began initial production of its new low-cost model in June and targets mass production in the second half of the year, the revenue slump overshadowed the announcement, triggering fresh concerns among investors.
Market Performance
Meanwhile, Wall Street’s major indexes are trading mixed, but both the Nasdaq and S&P 500 are breaking new records, buoyed by anticipation of upcoming trade deal announcements from President Donald Trump, the impact of recent earnings reports, and early indicators of U.S. economic performance for July.
In this context, the S&P 500 is up 0.3% at 6,377.10 points, marking a new all-time high for the 13th time this year, while the Nasdaq climbs 0.3% and holds above the 21,000 mark for a second straight day. Meanwhile, the Dow Jones slips 0.2% to 44,904.41 points.
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