Tesla revenue slipped 12% year over year in the second quarter of 2025, the company's July 23 earnings release showed. The Elon Musk -helmed electric car manufacturer took in $22.5 billion in revenue, down from $25.50 billion in the second quarter of 2024. It is the company's largest revenue drop in over a decade, according to Reuters.

Tesla's market cap fell below $1 trillion, but it still reflects investors' assumptions of enormous future growth.

Tesla has lagged the S&P 500 with fading momentum, high volatility, and fundamentals that don’t justify its valuation. Find out why TSLA stock is a hold.

Tesla’s battery business has been feeling the pain, too. For a while, this was a growth area for the company, albeit one with a relatively minor contribution to the bottom line. During Q2 2025, Tesla’s energy generation and storage division brought in $2.8 billion in revenue, a 7 percent decline from the same period in 2024.

The fallout could be seen in Tesla's Q2 numbers, while tariffs also stung the company. Meanwhile, it will soon see an even potentially bigger headwind due to the expiration of the U.S. electric vehicle (EV) credit by the end of third-quarter 2025.

Tesla's slump deepens as autonomy momentum fades. Explore the impact of tariffs, earnings slowdown, and what it means for TSLA's $300-range volatility.

Retail investors remained bullish on Tesla despite Daiwa Capital Markets cutting its profit estimates for 2025 and 2026, as well as a disappointing second-quarter (Q2) report. Tesla delivered $0.40 adjusted earnings per share for Q2,

Here are the bull, bear, and base cases for the EV titan Tesla, as well as the varied viewpoints of multiple Wall Street pros.