Tesla’s Q2 Earnings Fall Short, Yet Robotaxi Launch Spurs Stock Volatility
Tesla has reported Q2 2025 earnings that did not meet Wall Street expectations. The earnings per share stood at 40 cents, falling short of the anticipated 43 cents. The electric vehicle giant posted a revenue of $22.50 billion, as opposed to the expected $22.74 billion, marking a 12% year-over-year decline.
CEO Elon Musk acknowledged the challenging times ahead, stating, We probably could have a few rough quarters.
He attributed this to the impact of higher tariff costs and the expiration of federal electric vehicle tax credits.
However, Tesla initiated its first commercial robotaxi service in Austin during Q2. Musk boldly predicted that the service could cater to half the US population by the end of the year, subject to regulatory approvals.
The company also announced the commencement of production of a more affordable model in June. Volume production is planned for the second half of 2025. Despite the mixed results, Tesla’s energy business achieved a record deployment with 9.6 GWh of storage products deployed during the quarter.