Tesla Q2 Results Miss Wall Street Expectations

Tesla Inc. said it’s moving forward with its robotaxi and affordable vehicle plans while reporting second-quarter earnings that fell short of Wall Street’s estimates. 

Adjusted earnings were 40 cents per share, just below the average analyst estimate. Revenue fell 12% to $22.5 billion, also lower than expectations and the sharpest decline in at least a decade. Gross margin, a measure of profitability, was higher than anticipated. 

Tesla said many of its key initiatives remain on track “despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment.”

The shares slipped less than 1% at 4:24 p.m. in extended trading in New York, erasing an earlier gain. 

The stock’s value has fallen 18% since the start of the year but has largely rebounded from lows in March and April. Some investors are looking past Tesla’s uneven financial results and toward Chief Executive Officer Elon Musk’s promises of a future built around artificial intelligence, humanoid robots and self-driving technology.

Tesla’s brand has become increasingly polarizing following Musk’s support of President Donald Trump. During his brief role helping the administration, Musk’s attempts to slash government spending generated criticism from many of Tesla’s traditionally left-leaning consumers, while some investors worried the project was a distraction. A number of analysts have adjusted their expectations downward in recent weeks.