Tesla's financial report is bleak, Musk warns that the company will face tough times in the coming quarters.

Electric car giant Tesla's performance in the second quarter financial report was dismal, with CEO Elon Musk warning of a possible difficult period ahead. Tesla's second-quarter revenue fell 12% year-on-year to $22.5 billion, the largest decline in at least a decade. Adjusted earnings per share were $0.4, slightly below analysts' average estimates. Despite there being no new scandals in Tesla's financial report, and the continued progress of the autonomous taxi and affordable car model plans, the company's conference call with analysts failed to dispel market concerns about the future. Musk, unusually subdued, expects to launch autonomous taxi services in more cities by the end of the year, but also warned that government incentives for electric vehicles are expiring, which will impact the core automotive business. The decline in revenue is mainly due to reduced vehicle deliveries, declining regulatory credit revenue, and lower average selling prices. Additionally, sales in the energy generation and storage business are also declining. While certain segments of the business, including the supercharging network, are growing, CFO Vaibhav Taneja warned that the Trump administration's tax reform and tariffs will impact demand. Tesla's stock price fell by 5.2% in after-hours trading, and as of Wednesday's close, it has fallen by 18% this year, although it has recovered slightly from the lows in March and April. Despite the poor financial performance, some investors are more focused on Musk's promises for the future of artificial intelligence, humanoid robots, and autonomous driving technology. Musk reiterated the importance of the autonomous driving and Optimus humanoid robot projects. He said, "If the autonomous driving and humanoid robot projects progress smoothly, Tesla will become the world's most valuable company." However, he also admitted that the company will inevitably experience growing pains when investing in these areas. Musk stated that Tesla may provide detailed updates on the progress of humanoid robots, artificial intelligence, and chip design at the shareholders' meeting.