Tesla second quarter (Q2) revenue falls 12% amid political controversy. Image: AOL.
(The Post News)– On the evening of July 23, electric vehicle manufacturer Tesla Inc. released its second quarter earnings report, confirming a 12% decline in revenue—the company’s worst quarterly drop in over a decade.
The decline, from $25.5 billion to $22.5 billion in the April–June quarter (Q2 2025), comes after mounting controversy surrounding CEO Elon Musk’s political positioning, particularly his contrast with U.S. President Donald Trump.
Tesla has faced growing scrutiny in recent months following Musk’s brief stint in government and his recent launch of a new political party. The fallout between Musk and Trump in June marked a political turning point that affected public sentiment, contributing to lower sales and vehicle deliveries. The company reported a 14% decline in vehicle deliveries in this quarter, while revenue from car sales fell by 16%.
This led to a loss of investor confidence and a decline in market value. Despite efforts to boost sales through discounts, financing offers, and the relaunch of a refreshed version of its best-selling Model Y SUV, Tesla’s sales continued to decline as competition from more affordable electric vehicles intensified, particularly in international markets.
To address this, Tesla confirmed that it has begun limited production of a new, lower-cost model, which it plans to scale in the second half of the year. While details remain limited, the move suggests a strategic shift aimed at appealing to a broader customer base and regaining lost market share.
Meanwhile, questions continue to surround the progress of Tesla’s Robotaxi initiative, which began trial runs in Texas last month. While Musk previously indicated that the service could expand to the San Francisco Bay Area, pending regulatory approval, the company has not provided any update on whether the necessary paperwork has been filed.
journalist-lukhona@thepostnews.net
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