Tesla Plunges 5.92% on Earnings Miss, Musk Controversy

On July 24, 2025, Tesla's stock experienced a significant drop of 5.92% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

Tesla's second-quarter financial report revealed a decline in both revenue and profit, marking the company's largest quarterly revenue drop in over a decade. The company's revenue for the quarter was $225 billion, a 12% decrease from the previous year, and its net profit was $11.72 billion, a 16% decline year-over-year. This performance was attributed to various factors, including the impact of CEO Elon Musk's controversial political statements and the overall cooling of the global electric vehicle market.

The company's automotive revenue, which accounts for 70% of its total revenue, decreased by 16% to $166.61 billion. Despite the launch of an upgraded version of the Model Y, Tesla's sales have not shown significant improvement. The company's global vehicle deliveries for the quarter were 384,000 units, a 13% decrease from the previous year. This decline was partly due to the backlash from Musk's political activities, which affected Tesla's sales in Europe and the United States.

Tesla's market position and brand influence have also been challenged. In China, a key market for Tesla, local brands are gaining market share, and despite the launch of the upgraded Model Y, Tesla has not been able to reverse the decline in sales. The company's operating profit for the quarter was $9.23 billion, a 42% decrease from the previous year, and its operating profit margin was 4.1%, significantly lower than the 6.3% recorded in the same period last year.