Musk expects 'rough quarters' for Tesla

Tesla CEO Elon Musk suggested Wednesday that the electric vehicle company could face a “rough” couple of quarters going forward. 

The EV firm’s earnings dipped 16 percent in the second quarter of 2025, falling to just under $1.2 billion in the three-month period between April and June. During the same period last year, the company posted $1.4 billion in net income.  

“We probably could have a few rough quarters,” Musk said on Tesla’s earnings call. “I'm not saying it will, but we could.” 

However, he appeared optimistic about where the company is headed next year, as it increasingly focuses on autonomy and robotics. While Tesla still produces electric cars, Musk has sought to shift the company toward autonomous vehicles, like Robotaxi, and humanoid robots, like Optimus. 

Tesla has faced a tumultuous year so far, largely due to Musk’s involvement in politics. After supporting President Trump’s campaign last year, the Tesla CEO took on a high-profile role in his administration, leading the controversial effort by the Department of Government Efficiency (DOGE) to slash government spending. 

The EV maker became a political symbol for Musk, attracting both peaceful and destructive demonstrations. The company’s stock tumbled, and it posted a 71 percent drop in earnings in the first quarter. 

After Musk left the administration, Tesla investors appeared hopeful for more stability. However, he quickly became involved in a contentious public feud with Trump over his so-called “big, beautiful bill.” 

While the Tesla CEO voiced concerns about the tax and spending bill’s additions to the federal deficit, Trump accused Musk of being upset about the repeal of an EV tax credit, which is set to expire at the end of September. 

Musk and his fellow Tesla executives noted on Wednesday’s call that the repeal of the EV credit is likely to impact the company. 

“Given the abrupt change, we have limited supply of vehicles in the U.S. this quarter,” Vaibhav Taneja, Tesla’s chief financial officer, said, adding, “If you're in the U.S. and looking to buy a car, place an order now, as we may not be able to guarantee delivery orders placed in the later part of August and beyond.” 

Taneja said Tesla is currently focused on building and delivering as many vehicles as possible before the credit expires, a push that it likely to slow the company’s efforts to ramp up production of a new lower cost vehicle. 

He also warned of lower revenues after Trump’s bill eliminated emissions penalties that Tesla could sell to other carmakers.