Tesla’s core auto business—responsible for three-quarters of its $100 billion in revenue—has been sputtering in 2025. First-quarter profits plunged 71%, kept afloat only by $595 million in regulatory credit sales. Analysts expect another tough earnings report on July 23, forecasting a nearly 10% revenue dip and a 20% drop in profit.

Elon Musk's electric vehicle company Tesla delivered 13% fewer cars in the second quarter of 2025 compared to a year earlier.

Tesla reported another drop in EV sales, but Elon Musk is undeterred. As profits fall and market rivals grow, Musk shifts focus to robotaxis and AI robots. Despite challenges, investor trust remains high,