Shares of Tesla Inc. the Electric Vehicle manufacturing giant fell as much as 5% in extended trading on Wednesday, July 23, after its CEO Elon Musk warned that the company could face a “few rough quarters ahead” during its earnings call with analysts.“We probably could have a few rough quarters. I am not saying that we will, but we could,” Musk said.
Tesla’s results were a miss on expectations on both revenue as well as the earnings front. Revenue declined 12%, marking the sharpest fall in over a decade to $22.5 billion, while adjusted EPS stood at $0.4, which was also lower than the analyst expectation of $0.43.
Auto revenue for Tesla fell to $16.7 billion from $19.9 billion last year, within which, the revenue from sale of auto regulatory credits fell to $439 million from $890 million last year.
Tesla CFO Vaibhav Taneja warned that the One Big Beautiful Bill, passed by the Congress recently, would impact Tesla’s business. He also warned that Tesla may not be able to guarantee delivery order placed in the later part of August and beyond.“Given the abrupt change, we have limited supply of vehicles in the U.S. this quarter,” Taneja said. The Bill ends a Federal $7,500 EV tax credit by the end of September.
Tesla’s results were a miss on expectations on both revenue as well as the earnings front. Revenue declined 12%, marking the sharpest fall in over a decade to $22.5 billion, while adjusted EPS stood at $0.4, which was also lower than the analyst expectation of $0.43.
Auto revenue for Tesla fell to $16.7 billion from $19.9 billion last year, within which, the revenue from sale of auto regulatory credits fell to $439 million from $890 million last year.
Tesla CFO Vaibhav Taneja warned that the One Big Beautiful Bill, passed by the Congress recently, would impact Tesla’s business. He also warned that Tesla may not be able to guarantee delivery order placed in the later part of August and beyond.“Given the abrupt change, we have limited supply of vehicles in the U.S. this quarter,” Taneja said. The Bill ends a Federal $7,500 EV tax credit by the end of September.
Musk’s political affiliations have been one of the key reasons behind Tesla facing backlash across the US and Europe, a major trigger behind the stock’s underperformance so far in 2025. Musk was earlier part of the DOGE, endorsed Germany’s extreme anti-immigrant AfD party and then launched his own political party after the passage of the bill.
Shares of Tesla fell 4.5% in extended trading, extending their losses for 2025 to 20%, making it the worst performer among the magnificent seven.
(With Inputs From Agencies.)
