The famous American electric car manufacturer Tesla reported a decline in revenue and profit again in the second quarter of 2025. One reason is the political involvement of the company’s founder, Elon Musk.
The New York-based company recorded revenue of $22.5 billion in the three months ending in June, 12% less compared to the same period last year. Profit dropped by 16% to $1.17 billion.
Tesla is losing buyers not only in the U.S. but also in Europe. Analysts link this to Musk’s political views and controversial statements. After supporting some right-wing politicians in Europe last year, some customers in the UK, Germany, and France have turned away from him.
“Forrester” analyst Dipanjan Chatterjee said, “Elon Musk’s personal image has damaged the company’s brand. Tesla has become a ‘toxic’ brand inseparable from its leader.”
Musk focuses on robotaxis and robots, not cars
During the company’s earnings report, Musk talked more about robotaxis (driverless taxis), AI-based software, and robots rather than electric cars. However, these areas have yet to generate significant profit.
Tesla is currently testing a paid robotaxi service in Austin, Texas. Musk says this service will be available to half of the U.S. population by the end of 2025. However, some tests showed cases where the vehicle took a wrong lane.
Tesla is losing market share to competitors, especially China’s BYD and Germany’s Volkswagen. At the same time, the U.S. government eliminated the $7,500 tax credit for electric car buyers, which directly impacts Tesla’s sales.
Future plans: Cheaper model and robots
Musk plans to release a cheaper electric car model by the end of 2025 to boost sales. This model was initially planned for June.
Tesla also plans to produce 100,000 “Optimus” humanoid robots monthly within five years. According to Musk, robots will soon become so common in daily life that people won’t even notice them.
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