What is driving the TSLA after hours price drop?

The Tesla (TSLA) stock price dropped by 4.3% in the post-market session on July 23, 2025. This decline can be attributed to a combination of factors:

1. **Q2 Earnings Report**: Tesla's Q2 earnings showed a 23% drop in net income year-over-year, with adjusted EPS coming in at $0.40, in line with the analysts' consensus. However, the revenue fell by 12% year-over-year to $22.5 billion, primarily due to lower vehicle deliveries, reduced regulatory credits revenue, and a decrease in Energy/Storage revenue. Additionally, there was a decline in the average selling prices.
2. **New Political Party Formation**: Tesla shares fell by approximately 7% in premarket trading on July 7, 2025, following Elon Musk's announcement to form a new political party. This move has raised concerns among investors about the impact of increased political involvement on Tesla's core vehicle production and delivery goals.

In summary, the post-market price drop in Tesla's stock can be attributed to a combination of disappointing Q2 earnings and the impact of Elon Musk's new political party formation.

|code|Ticker|Name|Date|Post-Market Percentage Change|Pre-Market Percentage Change|market_code|
|---|---|---|---|---|---|---|
|TSLA|TSLA.O|Tesla|20250723|-4.281934087082033|-0.33121556110927786|185|