Tesla, Inc. (TSLA.US) Q2 performance declined and Musk warned of "poor future performance over the next few quarters", exacerbating concerns.

Tesla, Inc. (TSLA.US) latest released second-quarter financial report shows that its core financial indicators have been declining for the second consecutive quarter. The company's total revenue in the quarter decreased by 16% year-on-year to $22.5 billion, below analysts' expectations of $22.74 billion; Adjusted earnings per share were $0.40, also below market expectations of $0.43. As the core business sector, revenue from the automotive business decreased from $19.9 billion in the same period last year to $16.7 billion, with regulatory credit sales revenue decreasing from $890 million to $439 million, becoming an important factor dragging down performance. After the financial report was released, Tesla, Inc.'s stock price fell by as much as 5% in after-hours trading. Earlier, CEO Elon Musk had warned of a possible poor performance in the coming quarters, and CFO Vaibhav Taneja's further statement during the financial report conference call exacerbated market concerns. He revealed that a recent U.S. Congress bill will end the $7,500 federal tax credit for electric vehicles by the end of the third quarter, which will directly affect Tesla, Inc.'s business; at the same time, the company needs to adjust its supply chain to cope with the Trump administration's tariff policies. Taneja specifically warned: "Considering the sudden changes in the supply chain, there is limited vehicle supply in the U.S. market this quarter, and there is uncertainty in deliveries for orders placed in late August and beyond. Consumers with car purchase needs are advised to place orders early." From an operational perspective, Tesla, Inc.'s second-quarter net profit decreased from $1.4 billion ($0.40 per share) in the same period last year to $1.17 billion ($0.33 per share). In terms of delivery volume, data for the second quarter announced in early July showed global delivery of 384,000 electric vehicles, a 14% decrease year-on-year. Although Tesla, Inc. has not clearly defined "delivery volume" as final sales, this indicator is still considered the closest reference value to actual sales situations. Part of the pressure on performance is attributed to the resistance in the U.S. and European markets. Musk has recently been involved in political controversies, including funding support for Trump's re-election, supporting the German extreme anti-immigrant party Alternative for Germany (AfD), and promoting cuts to federal personnel, regulatory relaxation, and the cancellation of the U.S. Agency for International Development (USAID) in the Trump-led Department of Government Efficiency (DOGE). These actions have triggered negative reactions from some consumers and institutions. Since the beginning of the year, Tesla, Inc.'s stock price has fallen by approximately 18%, making it the weakest performer among tech giants, while the Nasdaq index has risen by about 9%. Despite the pressure, Tesla, Inc. is still advancing in new product layouts: at a shareholder meeting, it was disclosed that a more affordable model has been in production since June, with plans to achieve mass production in the second half of 2025. However, the production of this model (previously referred to as "Model 2" by outsiders) has been delayed multiple times, while Chinese competitors are accelerating the launch of affordable electric vehicles with advanced autonomous driving features, creating direct competition. Musk reiterated during the financial report conference call that Tesla, Inc.'s future will rely on autonomous driving rental vehicles and the humanoid Siasun Robot & Automation Optimus. He described the autonomous driving rental vehicle as a "money-making tool for car owners", stating that it can provide services while the owner rests; Optimus is positioned as a factory worker or household maid. Currently, Tesla, Inc. is testing autonomous driving rental services in limited areas in Austin, Texas, with vehicles equipped with safety officers and only open to specific users. The company plans to expand coverage and gradually eliminate safety officers, but progress is significantly behind Alphabet's Waymo, which operates commercial autonomous driving services in multiple locations, including Austin. Although the promotion of autonomous driving technology faces regulatory obstacles, Musk stated that "technologically, by the end of the year, ride hailing services covering 50% of the U.S. population can be achieved", but requires regulatory approval. It is worth noting that he had underestimated the related regulatory difficulties in a financial report conference call a year ago. In other business areas, Tesla, Inc.'s service and other departments (including the charging business) saw a 17% year-on-year increase in gross profit, mainly due to the increase in sales of supercharging stations. Over the quarter, more than 2,900 supercharging stations were added, bringing the total to 7,377 stations. In addition, the company's digital assets increased from $722 million a year ago to $1.24 billion. Overall, Tesla, Inc. is facing multiple challenges: changes in core market policies, intensifying competition, delays in new products, and regulatory uncertainties. Despite Musk's vision for the future of autonomous driving and Siasun Robot & Automation, short-term performance pressures and market doubts still need to be gradually resolved.