Tesla reported Q2 earnings with adjusted EPS of $0.40, in line with consensus, and a 12% YoY sales drop. CEO Elon Musk expressed optimism about Tesla's robotaxi potential and the Optimus robot, with investments exceeding $10 billion this year. Musk warned of "rough quarters" due to policy changes and EV credit elimination, but expects economies of scale to become attractive next year. Tesla's EV sales may face a hit due to tax incentive repeal, but Musk sees strong demand and plans to manufacture an "affordable EV." Robotaxi service is expected to show rapid growth, with regulatory approval expected for multiple regions

Tesla's Q2 2025 financial results reveal a 12% year-over-year sales drop, aligning with the consensus on adjusted EPS of $0.40. Elon Musk remains optimistic about Tesla's future, particularly concerning their robotaxi service and the Optimus robot. Despite warnings about "rough quarters" due to policy shifts and the elimination of EV credits, Musk anticipates that economies of scale will become more appealing next year. The impact of the tax incentive repeal on Tesla's EV sales is a concern, although Musk is confident in the continued strength of demand. Tesla is planning to produce an "affordable EV," which could help maintain their market position in the face of potential headwinds. The Robotaxi service is expected to experience rapid growth, with improvements to the FSD (Supervised) branch and upgrades from the Robotaxi build in Austin being integrated into the general production release. Regulatory approval for the Robotaxi service is anticipated for multiple regions, including the San Francisco Bay Area in California.