Tesla earnings report live updates: EV maker reports steepest revenue drop in a decade, stock swings after hours
Adjusted earnings per share, a key measure of profitability, were 40 cents compared to Wall Street's estimates of 42 cents.
Investors had an inkling of the challenges the latest earnings would reveal. Tesla already reported deliveries for the second quarter on July 2, missing analysts' expectations. The company delivered 384,000 cars compared to estimates of 389,400 vehicles delivered.
The stock has been on a roller coaster ride in 2025. Sagging sales figures, Elon Musk's political activities, and public feuding with President Donald Trump have dented investor confidence, even as many on Wall Street are bullish about the company's longer-term prospects.
Heading into the 5:30 p.m. ET analyst call, investors will be listening closely for key business updates on initiatives including robotaxis, full self-driving, and AI.
Tesla stock is down about 18% through Wednesday's close.
Tesla's latest launch was actually a diner?Two Business Insider reporters visited the new Tesla Diner in Los Angeles within 24 hours of its grand opening this week. The retro-futuristic atmosphere is complete with rounded architecture, eye-catching neon lighting, 45-foot drive-in screens playing Sci-Fi classics like "Star Trek" and "War of the Worlds," and servers darting around on roller skates.Celebrity chef Eric Greenspan controls the 24-hour diner's menu offerings, which are reimagined takes on classics including burgers, hot dogs, breakfast tacos, and chicken and waffles. Opening day was bustling and busy, with the kitchen at times overwhelmed by wave upon wave of guests — typical for a grand opening — but minor hiccups in service were easily overcome and both reporters left feeling the diner was worth a second visit.While it remains to be seen how long the novelty of the Tesla Diner will linger at the West Hollywood location, Musk has said this is just the first of many souped-up Supercharger stations to come, announcing on Monday that he's planning to build a second drive-in near SpaceX's Starbase spaceport in Texas.— Katherine Tangalakis-Lippert
As Tesla continues its pilot launch of the robotaxi service in Austin, investors and analysts will be paying attention to a few key data points.Gene Munster, managing partner at Deepwater Asset Management and Tesla investor, said in an analysis published Tuesday that the rate of the Robotaxi's expansion will be more important than the "absolute fleet size of geofence size."Investors appear to agree, as one of the top questions on Tesla's online Q&A forum asks about the rate the company expects to increase operations.Jose Asumendi, JP Morgan's head of the European Automotive Research team, told Business Insider that Robotaxi's long-term progression will be determined by the number of cities the service has been deployed, number of accidents and disengagements per kilometer, and the technology's acceptance by the public.-Lloyd Lee
Tesla stock could be heading toward an inflection point, if Musk continues to lead Tesla full-time and stay on top of its most important projects, analysts at Wedbush Securities said.In a note on Tuesday, the firm said that the outlook for Tesla looked "dramatically different" now compared to three months ago, when Musk was still working closely with the Trump administration.In a previous note, Wedbush analysts expressed concerns over Musk's political intentions, calling his plan to create a new political party a "Soap Opera" that needed to end. The firm also outlined a list of actions Tesla's board needed to take to move the company forward, which included drafting a new pay package for Musk and setting guidelines for Musk's political plans."We are at a 'positive crossroads' in the Tesla story," the analysts said.Wedbush reiterated its "Outperform" rating and the stock and $500 price target, implying about 49% upside from current levels.
Tesla is in a difficult spot ahead of earnings, Federico Merendi, an analyst at Bank of America, wrote on Monday."Tesla 2Q earnings are likely to be challenged due to tariffs and disappointing deliveries," Merendi wrote, adding that Tesla sourced its batteries from China and that its exposure to tariffs was "not insignificant."The bank reiterated its "Neutral" rating on the stock and raised its price target to $341 a share, up from the prior estimate of $305. Its new price target implies about 3% upside from the current levels.
Musk's promise to create a new political party could be a short-term headwind for Tesla stock, analysts at Morgan Stanley wrote in a note, calling the situation a "party crasher."The bank pointed to the immediate drop in Tesla stock after Musk officially announced his plan to form the "America Party" in a post on X earlier this month, which sent shares tumbling around 7%."While the situation remains fluid, we believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk's political priorities which may add further near-term pressure to TSLA shares," analysts wrote.Still, Tesla stock remains a "top pick" for the bank. Analysts reiterated their $410 price target on the stock, pointing to their growth forecasts for Tesla's auto business.
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Tesla's earnings call left more questions than answers on robotaxi
Tesla's CEO, Elon Musk, makes bold projections for his ventures. Robotaxi is no exception. Wednesday's earnings call, however, didn't give specifics on one big question: How is robotaxi's pilot launch going in Austin? The self-driving car program launched in June. "They've got to show progress, and that's what we didn't get," Gene Munster, a managing partner of Deepwater Asset Management who writes about Tesla and Alphabet, told Business Insider. Here's what Ashok Elluswamy, Tesla's VP of AI software, said after an analyst asked for key performance indicators around robotaxi, including the number of vehicles Tesla is operating, miles driven autonomously, and the number of safety-critical interventions: "We have more than 7,000 miles operating in Austin area. Just because service is new, we have a handful of vehicles right now, but then we are trying to expand the service in terms of both the area and also the number of vehicles, both in Austin and other locations. So far, there's like no notable safety critical incidents. Sometimes we have our own restrictions as to, for example, we restrict our speeding limit to 40 miles per hour … and if the vehicle wants go on like higher speed roads, we can stop the vehicle, but those are out of convenience as opposed to safety critical nature. So far this service has been really well received, and we continue to expand on it." In short, a couple of vehicles drove about 7,000 miles in Austin without alarming safety issues. The lack of critical safety incidents is great news for investors, but otherwise, there were not many other details. Musk said on Wednesday's call he expects autonomous Teslas to be available to "probably half of the population of the US by the end of the year," pending government approval. That's a lot of places that Tesla would need to cover and a lot of regulatory hoops to jump through in roughly five months. Tesla recently expanded robotaxi's service area in Austin, just a few weeks after it debuted to a limited number of invitees. On X, the company and Musk proudly showed a phallic-shaped geofence expansion that essentially said to competitors, "Mine is bigger than yours." In that move, Tesla made no mention of how many robotaxis it would add to the roads or whether it would invite more people to meet the potential increased demands of a larger service area. So far, we only know the figures Musk gave during April's earnings call, when the CEO said Tesla would start with 10 to 20 Model Ys. The service is still limited to invite-only. Tesla and a few folks on the company's Autopilot team didn't respond to questions posed on X about the vehicle numbers. A spokesperson for Tesla did not respond to a request for comment from Business Insider. What analysts want from Tesla Analysts told BI they would like to see a few robotaxi data points. Right now, a safety monitor sits on the front passenger side of every robotaxi. Data around human intervention or miles driven per disengagement is crucial because it can give investors some insight into when Tesla may feel confident enough to remove the human safety monitor, Munster said. In one of my rides in Austin, a safety monitor had to stop the ride as the vehicle started to head toward the wrong direction on a one-way road. "I think big picture is this: They're not comfortable at removing the observer right now because they know the smallest mess up on safety is going to be just a huge blow to them. And I don't blame them for going slow at it," Munster said. "I just wish that three months ago, when they launched, they would've said, 'Just so you know, we're really prioritizing safety here. It's going to be slow in Austin.'" Jose Asumendi, JPMorgan's head of European automotive research, told BI that if Tesla can get to a stage in Austin where robotaxis can drive people from one point to another and operate in different weather, it would mark "a stage of advanced development rather than an initial phase." Moving forward, Asumendi said that he'll be paying attention to three data points to track robotaxi's progression: number of cities the service has been deployed, number of accidents and disengagements per kilometer, and the technology's acceptance by the public. Tesla's stock fell about 4.4% after trading hours on Wednesday after the company reported revenues that were down 12% year over year and missed Wall Street expectations. The stock was down 8% on Thursday and is down 24% year to date.
