Wed Jul 23 20:10:00 UTC 2025: **News Article:**

**Tesla’s Automotive Revenue Plunges Amidst Delivery Slump and Political Backlash**

**PALO ALTO, CA -** Tesla (TSLA) reported a significant 16% decline in automotive revenue for the second quarter of 2025, signaling ongoing struggles for the electric vehicle giant. Revenue from automotive sales reached $16.7 billion, down from $19.9 billion in the same period last year, falling short of analyst expectations for the second consecutive quarter. Vehicle deliveries also slumped, dropping 14% year-over-year to 384,000 units.

The company’s net income also took a hit, falling to $1.17 billion (33 cents per share) from $1.4 billion (40 cents per share) a year ago. Revenue from sales of auto regulatory credits declined significantly, falling to $439 million from $890 million a year earlier.

Analysts point to multiple factors contributing to Tesla’s downturn. In the U.S. and Europe, CEO Elon Musk’s increasing political activity, including financial support for former President Donald Trump and endorsements of the German AfD party, is reportedly fueling a backlash against the company.

While Tesla grapples with current challenges, it has begun initial builds of a more affordable model planned for volume production in the second half of 2025. This comes as competitors, particularly in China, are offering more affordable EVs with advanced self-driving features as standard options.

Musk continues to emphasize Tesla’s future focus on robotaxis and humanoid Optimus robots. Tesla has begun testing a robotaxi service in Austin, Texas, although it lags behind Alphabet’s Waymo in commercial robotaxi deployment.

Despite the overall downturn, Tesla’s services and other segment, which includes revenue from EV charging stations, saw a 17% increase in gross profit. The company also reported a rise in the value of its digital assets to $1.24 billion.

Tesla shares are down approximately 18% for the year, making it the worst-performing stock among tech’s megacaps.

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