Elon Musk's Tesla lost market share in Europe for the sixth straight month in June, according to according to the European Automobile Manufacturers Association. The figures reaffirm a downward regional trend for the U.S. electric vehicle maker.
Tesla urged potential US buyers to order now due to limited vehicle supply this quarter. Trump's Big Beautiful Bill ends the $7,500 EV credit, which will likely affect Tesla's US sales.
Tesla shares fell nearly 6% in early trading in Europe on Thursday, after Elon Musk's electric vehicle maker posted its worst quarterly decline in sales in over a decade.
Elon Musk, the CEO of Tesla, said the company's budget EV is "just a Model Y." "Let the cat out of the bag there," Musk said during the company's second-quarter earnings call.
Tesla's Q2 revenue fell sharply as CEO Elon Musk warned of a "rough" next few quarters. Tesla plans to expand Robotaxi services and launch a cheaper Model Y lookalike by the end of 2025.
Tesla, Inc. (NASDAQ:TSLA ) Q2 2025 Earnings Conference Call July 23, 2025 5:30 PM ET Company Participants Ashok Elluswamy - Executive Officer Elon R. Musk - Co-Founder, Technoking of Tesla, CEO & Director Franz von Holzhausen - Corporate Participant Chief Designer - Corporate Participant Lars Moravy - Vice President of Vehicle Engineering Michael Snyder - Corporate Participant Travis Axelrod - Head of Investor Relations Vaibhav Taneja - Chief Financial Officer Conference Call Participants Adam Michael Jonas - Morgan Stanley, Research Division Dan Meir Levy - Barclays Bank PLC, Research Division Emmanuel Rosner - Wolfe Research, LLC Mark Trevor Delaney - Goldman Sachs Group, Inc., Research Division William Stein - Truist Securities, Inc., Research Division Travis Axelrod Good afternoon, everyone, and welcome to Tesla's Second Quarter 2025 Q&A Webcast.
Tesla outperformed basement-level expectations in Q2. However, the company will need to show evidence that its core EV business will stabilize, that it will scale its robotaxi business, and that its thriving energy business will continue to grow.
Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world.
Tesla, Inc.'s Q2 2025 saw double-digit declines in revenue, deliveries, and free cash flow, with even the energy segment now deteriorating. Profitability is collapsing, with operating margin dropping to 4.1% and free cash flow falling 89% year-over-year, despite ongoing heavy CapEx. Without regulatory credits starting Q4 2025 and with intensifying competition, especially in China and Europe, profitability faces further pressure.
The headline numbers for Tesla (TSLA) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Tesla (TSLA) came out with quarterly earnings of $0.4 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.52 per share a year ago.
Tesla has started limited production on a cheaper model in a bid to boost sluggish demand after revealing its worst slump in quarterly sales for over a decade.