Tesla (TSLA) Plunges 6.09% on Earnings Miss, Market Concerns

On July 24, 2025, Tesla's stock experienced a significant drop of 6.09% in pre-market trading, reflecting investor concerns and market sentiment.

Tesla's second-quarter financial report revealed a decline in both revenue and profit, with revenue falling to $225 billion, a 12% decrease year-over-year, and net profit dropping to $11.72 billion, a 16% decrease. This marks the largest quarterly revenue decline in nearly a decade for the company. The report also highlighted a 13.48% decrease in global deliveries to 384,100 vehicles, further indicating a challenging market environment.

The company's performance was impacted by several factors, including political controversies surrounding CEO Elon Musk and increased competition in the electric vehicle market. Musk's political statements have led to boycotts and reduced sales in key markets such as Europe and the United States. Additionally, the global electric vehicle market has seen a slowdown, with local brands in China gaining market share, posing a significant challenge to Tesla's dominance.

Tesla's operating profit for the second quarter was $9.23 billion, a 42% decrease year-over-year, with an operating profit margin of 4.1%, down from 6.3% in the same period last year. The company's automotive revenue, which accounts for 70% of total revenue, decreased by 16% to $166.61 billion, reflecting a decline in global vehicle sales. Despite the launch of an upgraded version of the Model Y, sales have not improved significantly.

Tesla's net profit for the second quarter was $11.72 billion, a 16% decrease year-over-year, marking the third consecutive quarter of year-over-year profit decline. This is the first time since the launch of the Model Y in 2020 that Tesla has experienced three consecutive quarters of year-over-year profit decline. The company's global vehicle deliveries for the second quarter were 384,000 units, a 13% decrease year-over-year. Musk's political statements during the Trump administration have negatively impacted Tesla's sales in Europe and the United States.