Tesla Q2 Earnings Preview: Navigating a Rocky Relationship and a Declining Auto Business.

Tesla's Q2 earnings report is expected to reveal a 9% drop in revenue to $22.79 billion and adjusted EPS of $0.43, down slightly from a year ago. The company's core auto business is struggling, with a 13.5% drop in global vehicle deliveries to 384,122 in Q2. Tesla's robotaxi rollout is a bright spot, with plans to expand testing in Austin, Texas, and the San Francisco Bay Area. The company's stock has pared some of its early 2025 losses but remains down around 20% year to date.

Tesla's (TSLA) second-quarter earnings report, scheduled for release on Wednesday after the bell, is set to provide insights into the company's performance amidst a challenging market environment. The stock has seen a 20% year-to-date decline, with a rocky relationship between CEO Elon Musk and President Trump adding to the pessimism surrounding the company [1].

Analysts predict a 9% drop in revenue to $22.79 billion, down from $25.05 billion a year ago. The core auto business, which drives the majority of revenue and profit, is expected to report adjusted EPS of $0.43, translating to adjusted net income of $1.513 billion, a slight decline from the previous year [2].

The company's global vehicle deliveries have slumped by 13.5% year-over-year, with only 384,122 vehicles delivered in Q2. Musk's political activities, increased competition, and changing consumer preferences have contributed to this decline. Tesla's Model Y refresh has had a muted impact on sales, and the company is facing challenges in key regions like Europe [1].

However, Tesla's robotaxi rollout presents a bright spot. The company is expanding its testing in Austin, Texas, and plans to begin testing in the San Francisco Bay Area within one to two months, pending regulatory approvals. This expansion is part of Tesla's long-term strategy to revolutionize public transportation [3].

Investors are also looking forward to updates on the company's AI initiatives and the potential launch of a cheaper electric vehicle (EV) to boost growth. Despite Musk's political aspirations, the focus remains on Tesla's ability to innovate and adapt to market demands [4].

References:
[1] https://finance.yahoo.com/news/tesla-q2-earnings-preview-3-things-to-watch-100006343.html
[2] https://www.gurufocus.com/news/2981821/tesla-tsla-q2-earnings-what-investors-should-watch-for
[3] https://www.shop4tesla.com/en/blogs/news/tesla-robotaxi-expandiert-in-austin-und-steht-bald-im-bay-area-bereit
[4] https://www.home.saxo/content/articles/equities/tesla-q2-earnings-preview-17072025