Tesla shares plunge after revenue drops 12% in weak Q2 earnings
In its earnings for the second quarter released in the US on Wednesday, the company announced that revenue was down 12 per cent year-on-year with profit falling short of Wall Street expectations.
It was the greatest fall in quarterly revenue for Tesla in more than a decade.
RELATED: China ramps up Aussie takeover
Adjusted earnings for the second quarter came in at USD $0.40 per share, missing analysts' forecasts.
Free cash flow plunged 89 per cent compared to a year earlier.
Company revenue fell to $US$22.5bn ($34.1bn) for the April-June quarter down from $US25.5bn a year before.
Profit fell from $US1.4bn to US$1.2bn.
'AUTONOMY IS THE STORY'
Despite the figures, Tesla remains the largest electric vehicle manufacturer in the United States however Q2 delivers were down 14 per cent, the second straight quarterly fall.
The company is facing growing competition, particularly from Chinese rivals like BYD, XPeng, Zeekr, GWM and Chery.
It has also faced brand damage following CEO Elon Musk's high-profile political activity and brief advisory role to the Trump administration.
In the earnings call with analysts, Musk focused on the future of Tesla, particularly its plans for autonomous driving, calling the push into self-driving taxis critical to the company's future.
MORE: Aussies 'not ready' for advanced driver tech
'Autonomy is the story,' he said.
Musk said he has plans to expand Tesla's limited robotaxi service in Austin to half of the US population by end of next year.
But he acknowledge that the timeline was heavily dependent on regulatory approval.
BUYING INTO MUSK'S PROMISES
Stake market analyst Samy Sriram said investors were left with more questions than answers.
'There's very little in Tesla's earnings report that will change anybody's mind on the stock,' she said.
'Bears will point to bleaker than predicted numbers, with revenue, EPS and cash flow all down and declining sales in core markets. Bulls will note pre-production of a more affordable model, a refreshed Model Y SUV, an uptick in Asia and the promise of Robotaxis.'
However, when Tesla CFO Vibhav Taneja was asked about the progress of the Robotaxi pilot, he said only a 'handful of vehicles' were active and that the program has logged 7,000 miles of operation since launching on 22 June 2025.
MORE: The end of travel as we know it
Sriram said the numbers 'don't make for pretty reading,' pointing in particular to a 51 per cent drop in revenue from automotive regulatory credits, what other car makers buy from Tesla when they can't comply with government emissions rules.
'Analysts flagged beforehand this could be a sore spot for Tesla, but it's still a pain point on the balance sheet,' she said.
However, she added there are 'some bright spots'.
'There's an 18 per increase in Supercharging stalls added, and gross profits from energy storage deployments hit a record $846 million this quarter,' she said.
Investors and analysts still remained cautious as Tesla shares fell more than four per cent in after-hours trading and data from Stake showed 56 per cent of trades were weighted towards selling following the earnings call.
'The market seems to be cautious. There's definitely a bit of scepticism from Wall Street - after the earnings call,' she said.
'Ultimately, the results and reaction are probably a reflection that if you buy into Elon Musk's promises, you'll probably still buy into Tesla. If you don't, you won't.'
eToro market analyst Josh Gilbert said the results show a company 'caught in transition'.
'There's a road ahead, but Tesla is stuck in the slow lane, carrying the weight of underwhelming vehicle sales today while pushing the ambitious promises of Robotaxis, AI, and energy dominance tomorrow,' he said.
Tesla's shift towards AI, robotics and energy storage was a point of conversation during the earnings call but Gilbert said there was a lack of detail regarding delivery timelines or commercial impact.
'While Tesla insists its energy and AI businesses are 'more critical than ever', the company is offering little detail on how or when these emerging divisions will meaningfully move the needle for investors,' he said.
CHEAP MODEL ON THE WAY
The company confirmed its lower-cost Tesla model has entered early production, but volume output is not expected to ramp up until late 2025, pushing its commercial impact further out.
Gilbert said Musk's low energy during the earnings call may not help rebuild confidence.
'Musk's low-energy tone on the call will likely disappoint shareholders; it felt like Musk on mute rather than Musk the magician, particularly at a time when a steadier, more confident hand at the wheel was needed,' he said.
MORE: Tesla reveals major Robotaxi move
While Tesla continues its plans for full autonomy and global energy dominance, with no update on delivery guidance and Tesla's second-quarter drop, the future looks uncertain.
'The bigger picture here is that Tesla is undoubtedly a technology business rather than an automaker,' he said.
'But with its traditional profit engine stalling, Tesla's visionary plans need to start producing rather than just promising.
'Tesla's long-term vision continues to evolve, from the rollout of its Robotaxi platform to leadership in AI and robotics, and the eventual launch of more affordable models. But in the short term, with weakening fundamentals, leadership distractions and continued delivery shortfalls, the pressure on the share price is unlikely to ease anytime soon.'
Originally published as 'Musk on mute' as pet project crashes
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Australian
4 hours ago
- The Australian
Hyundai Australia boss admits 'terrible' EV sales amid Chinese competition
Hyundai's new Australian boss says the brand has 'ground to make up' after doing a 'terrible job' selling electric cars in Australia. Don Romano took over as Hyundai's Australian chief executive in March after a stint in Canada, where the brand has a strong share of electric vehicle sales. But in Australia, Hyundai's EV performance is less impressive. MORE: EVs embrace wireless charging The critically acclaimed Hyundai Ioniq 5 and Ioniq 6 duo attracted just over 500 combined sales in the first six months of the year, placing them well behind rivals such as the Tesla Model Y (10,431) and Model 3 (3715), BYD Sealion 7 (3756) and Seal (1609), Kia EV5 (2765), MG4 (2268), Geely EX5 (1845) and Polestar 4 (676). 'We have ground to make up,' Romano says. MORE: The problem buying cars in Australia 'We do a terrible job with our EVs … we are not doing the job we should be. 'Our market share of electric vehicles is extremely low relative to our market share of total vehicles and the only explanation for that is that we haven't put enough focus on it because I can see other electric car companies that are … doing a much better job with their EVs than they do with their ICE [internal combustion engine vehicles]. 'We're the opposite.' MORE: US giant's huge move in Australia Romano believes Hyundai's previous managers made mistakes, including a decision to bypass the brand's dealer network to sell cars such as the Ioniq 5 directly to customers. 'We went around our dealers,' Romano says. 'So, we have a job to do to get our dealers back in the game and to let them know that no, we are going through our dealer body and that you are an important part of the distribution process.' Romano's experience in North America differs from Australia. In the US and Canada, General Motors has the largest EV share behind Tesla. But here, Chinese brands such as BYD have an enormous role to play in the market, making competition tough for Hyundai. MORE: Great Aussie petrol lie exposed Hyundai's cheapest Inster EV starts from about $43,000 drive-away, roughly $10,000 more than the BYD Dolphin. The Ioniq 5 SUV is about $15,000 more than BYD's Sealion 7, and the Ioniq 6 sedan starts $27,000 upstream from the equivalent BYD Seal. 'The real issue when you talk about competitiveness is probably when you look at Chinese EVs, and the question I'd have is 'how long can they sustain that low price' when we're all using the same materials and the same equipment?',' he says. 'Eventually, when you look at the same systems that are used to build these cars and the same equipment and the same material, eventually, it comes to an equilibrium where we're all having on the same cost factor that we're going to have to all live with. 'And then the pricing really just comes down to what it takes to distribute the cars and market the cars. So I don't think any change in our competitive pricing is something that is a long-term issue. I think we're going to ultimately all be in the same bandwidth on a car-by-car basis. 'I don't know how they do it other than, you know, I read the same things you do about government intervention and support … 'It's one big world that we all live in and we're all going to be living in the same economic environment, so whatever advantage one country has over another, and I've seen this happen in my 40 years, where it used to be cheaper to build in one country than another, and then suddenly it's just as expensive, I think that's ultimately going to happen. 'Whether that's in my lifetime or not, that I can't answer. But for right now it appears they have it.' Life The boss of one of the world's biggest selling car companies has made a shocking admission as to why Aussies just aren't interested in them. Motoring The EV war in Australia between Tesla and numerous Chinese brands is about to take a turn thanks to an old rival.
Man of Many
8 hours ago
- Man of Many
BYD Shark 6 Continues to Climb List of Australia's Best-Selling Utes
The best-selling ute in Australia is the Ford Ranger with 32,241 sales across its 4×2 and 4×4 line-up through July 2025. It's closely followed by the Toyota HiLux (30,943) and Isuzu D-Max (16,416). However, a new player from the Chinese brand BYD is in town, whose plug-in hybrid Shark 6 ute has proven to be a sales magnate through July 2025, recording 11,657 sales. It's beaten the Mitsubishi Triton, Mazda BT-50, and Nissan Navara, but how does it stack up against its Chinese competition in the GWM Cannon? Let's look at the list of Australia's best-selling utes, according to VFACTS sales data. Best-Selling Utes in Australia at a Glance Our list includes the following highlights: Now you've read the highlights, let's check out the complete list. 2025 Ford Ranger PHEV Stormtrak | Image: Ford Australia 1. Ford Ranger, 32,241 sales Price: from AUD$37,130 to $90,690 before on-road costs. The ute market is as strong as ever, with a 1.0% sales increase through July 2025. Leading the charge is Australia's best-selling ute, the Ford Ranger, whose 4×4 sales might be down 13.8% on the year, but still strong enough to lead the segment. Its closest competitor, the Toyota HiLux, outsold the Ranger in July, but it still has some ways to make up the nearly 1,500 sales margin. Still, with a new HiLux on the way sometime in the next 16 months, it will be interesting to see how Ford responds beyond the launch of their plug-in hybrid models. The answer is likely Super Duty, with a surprisingly affordable price now confirmed for Australia. Below, we've included information about the top-spec V6 diesel variants. Power and torque are still something the HiLux can't compete with. Ford Ranger V6 Diesel key specifications: Engine : 3.0-litre single-turbo diesel V6 : 3.0-litre single-turbo diesel V6 Power / Torque : 184 kW @ 3250 rpm / 600 Nm @ 1750-2250 rpm : 184 kW @ 3250 rpm / 600 Nm @ 1750-2250 rpm Transmission : 10-speed automatic : 10-speed automatic Drivetrain : On-demand 4WD with 2H, 4A, 4H, 4L modes : On-demand 4WD with 2H, 4A, 4H, 4L modes Braked towing capacity: 3,500 kg 2024 Toyota HiLux | Image: Toyota Australia 2. Toyota HiLux, 30,943 sales Price: from AUD$27,730 to $75,310 before on-road costs. With strong sales in the month, the Toyota HiLux clawed back ground on the Ford Ranger. Fleet sales still determine a large portion of this market, and with mining being such a prolific purchaser of new utes, it's not surprising to see the HiLux at the top of the market, despite its age. We expect to see a new HiLux model arrive sometime next year. Still, this generation has been continually refined to include a GR Sport variant (the most potent option) and even a mild-hybrid 48V variant over the years. It's important to note here that the Toyota HiLux is the best-selling 4×2 ute (4,698 sales). With an entry price below AUD$30,000, it's nearly $10,000 cheaper than a base-model Ford Ranger, and is a favourite amongst trademen and women who aren't interested in off-roading and camping and simply want a cheap and practical ute. Toyota Hilux GR Sport key specifications: Engine : 2.8-litre turbo-diesel four-cylinder : 2.8-litre turbo-diesel four-cylinder Power / Torque : 165 kW / 550 Nm : 165 kW / 550 Nm Transmission : 6-speed automatic : 6-speed automatic Drivetrain : Part-time 4WD : Part-time 4WD Braked towing capacity: 3,500 kg 2025 Isuzu Ute D-Max X-Terrain | Image: Isuzu Ute 3. Isuzu D-Max, 16,416 sales Price: from AUD$32,700 to $78,900 before on-road costs. If we're talking about practical utes, the buck stops with the Isuzu D-Max. Recently facelifted, the ute hasn't changed much in the last decade. With one of the most reliable engines under its bonnet and a host of trick off-road hardware, it's a favourite of adventurers. Like the HiLux, the D-Max isn't filled with large touch-screen infotainment screens. The brand's customers are more focused on the hardware, specifically the 4JJ3-TCX 3.0-litre turbo-diesel engine that produces a modest 140 kW of power and 450 Nm torque, but is known to last hundreds of thousands of kilometres. Still, without a hybrid option, the brand is concerned about the New Vehicle Efficiency Standards (NVES), which could cost them thousands if their vehicles don't adhere to strict emissions regulations. The brand hopes an all-electric D-Max, confirmed for Australia, will fix the NVES issue, but it will have to contend with slower-than-expected EV sales. Isuzu D-Max X-Terrain key specifications: Engine : 3.0-litre turbo-diesel four-cylinder : 3.0-litre turbo-diesel four-cylinder Power / Torque : 140 kW / 450 Nm : 140 kW / 450 Nm Transmission : 6-speed automatic : 6-speed automatic Drivetrain : Switchable 4WD with rear diff-lock : Switchable 4WD with rear diff-lock Braked towing capacity: 3,500 kg BYD Shark 6 | Image: BYD 4. BYD Shark 6, 11,657 sales Price: from AUD$57,900 before on-road costs. The plug-in hybrid Shark 6 ute has been a sales miracle for Chinese brand BYD. Of course, it had to be, as the brand has spent obscene amounts of money advertising the vehicle to true-blue Australians through sponsorship of various sporting fixtures and events. However, even with a near-impossible price tag, no one could have expected the average punter to be so willing to pick up the keys to a hybrid Chinese ute that no one had ever heard of. We had to drive one, and after only a few hours behind the wheel at the vehicle's launch, we were very impressed. It's not a hard-working ute built for the bush, but for most buyers, it's better because of it. The hybrid powertrain is superior to any common-rail diesel on the market, the ride comfort is top-notch because it doesn't have a 3.5-tonne braked towing capacity, and the NVH is SUV-like. With a successful marketing roll-out and a good product, sales followed. BYD has sold 11,657 Shark 6s this year, which isn't due to a spike in deliveries. The brand has sold more than 1,000 Shark 6s monthly since the vehicle landed on our shores. Even with a tougher month in July, where the Mitsubishi Triton beat it, it still managed 1,233 sales, a 7.1% increase on the prior month. The scary thing for mainstream ute brands is that the BYD Shark 6 is the first in a long line of cut-price, tech-filled, practical, and capable Chinese-made utes. Wait until the average punter gets behind the wheel of the updated GWM Cannon and LDV Terron 9. BYD Shark 6 key specifications: Engine : 1.5-litre turbo-petrol with dual electric motors : 1.5-litre turbo-petrol with dual electric motors Combined output : 321 kW / 650 Nm (approx.) : 321 kW / 650 Nm (approx.) Transmission : Electrified AWD (DMO platform) : Electrified AWD (DMO platform) Drivetrain : Full-time AWD : Full-time AWD Braked towing capacity: 2,500 kg 2025 Mitsubishi Triton | Image: Mitsubishi Australia 5. Mitsubishi Triton, 10,768 sales Price: from AUD$30,740 to $65,290 before on-road costs. It's been a year of ups and downs for the Mitsubishi Triton. The brand introduced the updated model with a price rise and a poorly-tuned driver monitoring system, but has since introduced an update to the latter and a host of cut-price mid-tier model grades that have helped boost sales. By the numbers, the 4×4 variant sales increased by 26.3% in July 2025 as EOFY deals rolled through. Still, we'd expect the Triton to continue to sell at an increasingly furious rate as the brand realises the need to move utes and help their bottom line. Having spent time behind the wheel of most 4×4 Triton model grades, including the new Mitsubishi Triton GLX-R, the ute is a compelling alternative to outdated dual-cab utes such as the Toyota HiLux and Nissan Navara. Still, unless you can find one for a competitive price, the pragmatic nature of the Triton only helps it so much, and the Ford Ranger represents the best balance of tech and practicality. Mitsubishi Triton GSR key specifications: Engine : 2.4-litre twin-turbo diesel four-cylinder : 2.4-litre twin-turbo diesel four-cylinder Power / Torque : 150 kW / 470 Nm : 150 kW / 470 Nm Transmission : 6-speed automatic : 6-speed automatic Drivetrain : Super Select II 4WD : Super Select II 4WD Braked towing capacity: 3,500 kg 2025 Mazda BT-50 | Image: Supplied / Mazda 6. Mazda BT-50, 8,976 sales Price: from AUD$35,520 to $74,095 before on-road costs. With an updated model line-up, the Mazda BT-50 has stabilised its sales in Australia, landing it at number six on the list of best-selling utes. Based on the same platform as the Isuzu D-Max, the BT-50 is underpinned by an excellent chassis and powertrain combination. However, it is let down on the pricing front, where it is simply too expensive compared to the all-around better Ford Ranger. Still, we'd argue this is Australia's best-looking dual-cab, especially the facelifted model. Mazda BT-50 SP key specifications: Engine : 3.0-litre turbo-diesel four-cylinder : 3.0-litre turbo-diesel four-cylinder Power / Torque : 140 kW / 450 Nm : 140 kW / 450 Nm Transmission : 6-speed automatic : 6-speed automatic Drivetrain : Part-time 4WD (rear diff-lock) : Part-time 4WD (rear diff-lock) Braked towing capacity: 3,500 kg 2025 Toyota LandCruiser 70 Series | Image: Supplied / Toyota 7. Toyota LandCruiser PU/CC, 6,182 sales Price: from AUD$75,600 to $87,600 before on-road costs. Even with the V8 diesel gone, the cult-status LandCruiser 70 Series still manages to rack up impressive sales figures. The month of July 2025 was kind to the farmtruck, where it managed 916 sales, but the year so far paints a different picture. Sales for the year are down 13.2%, which is worrying news considering the brand only recently updated the near century-old platform to meet safety requirements. Still, we wouldn't expect the 70 Series to be going anywhere anytime soon, considering the cash cow it is for Toyota. Toyota LandCruiser 70 Series GX key specifications: Engine : 2.8-litre turbo-diesel four-cylinder : 2.8-litre turbo-diesel four-cylinder Power / Torque : 150 kW / 500 Nm : 150 kW / 500 Nm Transmission : 6-speed automatic : 6-speed automatic Drivetrain : Part-time 4WD with low-range : Part-time 4WD with low-range Braked towing capacity: 3,500 kg 2025 Nissan Navara | Image: Supplied / Nissan 8. Nissan Navara, 5,103 sales Price: from AUD$34,306 to $71,643 before on-road costs. One of the oldest dual-cab utes on the market, the Nissan Navara's sales continue to cool, decreasing 16.9% in July and 15.3% on the year so far. We wouldn't expect that to change anytime soon, or at least until the brand decides it's time to update the aging ute to keep it in line with customer expectations in 2025. That said, if you're in the market for an off-road-focused dual-cab, the Nissan Navara PRO-4X Warrior is one of the best. Nissan Navara PRO-4X Warrior key specifications: Engine : 2.3-litre twin-turbo diesel four-cylinder : 2.3-litre twin-turbo diesel four-cylinder Power / Torque : 140 kW / 450 Nm : 140 kW / 450 Nm Transmission : 7-speed automatic (6-speed manual optional) : 7-speed automatic (6-speed manual optional) Drivetrain : Premcar-tuned 4WD with rear diff-lock : Premcar-tuned 4WD with rear diff-lock Braked towing capacity: 3,500 kg 2025 GWM Cannon | Image: Supplied / GWM 9. GWM Cannon, 3,614 sales Price: from AUD$33,990 to $47,990 before on-road costs. The GWM Cannon is quickly rising on the list as one of the best-selling utes in Australia. Having recently spent a week behind the wheel of this $43,490 drive-away Chinese ute, it's easy to see why. It's hard to put a price on the brand history of vehicles like the Toyota HiLux and Ford Ranger, and we don't think the GWM Cannon is a threat to those specific brands (yet). However, if you're in the market for a dual-cab ute and you're shopping for a Mazda BT-50, Nissan Navara, or similar, we wouldn't be surprised to see those buyers choose to save $10,000-15,000 because the Cannon is simply better. The lane-keep assist is awful, and the throttle pedal needs serious work, but everything else about this ute is on par with or better than the mainstay options in this segment. If anything, the Cannon should be a wake-up call to other dual-cab utes in Australia. GWM Cannon XSR key specifications: Engine : 2.4-litre turbo-diesel four-cylinder : 2.4-litre turbo-diesel four-cylinder Power / Torque : 135 kW / 480 Nm : 135 kW / 480 Nm Transmission : 9-speed automatic : 9-speed automatic Drivetrain : Switchable 4WD with front & rear diff-locks : Switchable 4WD with front & rear diff-locks Braked towing capacity: 3,500 kg 2025 Volkswagen Amarok | Image: Supplied / Volkswagen 10. Volkswagen Amarok, 3,505 sales Price: from AUD$55,490 to $82,990 before on-road costs. Rounding out the list of top-selling utes in Australia is the Volkswagen Amarok, which had 3,505 sales through July 2025. It's fair to say that the Amarok's sales have been slower than expected, but with a Walkinshaw variant on the way, expect hype to get back behind the ute. Previously based on a bespoke platform, the new generation Amarok is built on the same platform as the top-selling Ford Ranger. That makes sense to us, but maybe not to the consumer. What was previously a statement-making alternative to the mainstream utes (with a powerful V6 engine) is now just another dual-cab ute that chooses to wear R.M. Williams boots instead of Steel Blue. Still, this is an excellent ute, and the turbo-petrol engine option does make it interesting for those who want to spend more time on the tarmac than off it. Volkswagen Amarok PanAmericana TDI600 key specifications: Engine : 3.0-litre turbo-diesel V6 : 3.0-litre turbo-diesel V6 Power / Torque : 184 kW / 600 Nm : 184 kW / 600 Nm Transmission : 10-speed automatic : 10-speed automatic Drivetrain : Full-time 4Motion AWD : Full-time 4Motion AWD Braked towing capacity: 3,500 kg Best-Selling American Pick-Ups in Australia Sales of American pick-ups in Australia have cooled off since the government cleared out the tax loopholes, but that hasn't stopped brands like Ford, Ram, Chevrolet, and even Toyota from reaping the rewards of offering locally converted RHD trucks. Here's a quick look at the best-selling American pick-up trucks in Australia, according to VFACTS: RAM 1500 – 1,656 YTD – 1,656 YTD Chevrolet Silverado – 1,321 YTD – 1,321 YTD Chevrolet Silverado HD – 778 YTD – 778 YTD Ford F-150 – 545 YTD – 545 YTD Toyota Tundra – 490 YTD – 490 YTD RAM 2500 – 320 YTD – 320 YTD RAM 3500 – 7 YTD While it's tough to draw conclusions from these figures alone, the trend towards even larger full-size American pick-up trucks is something to note. Sales for the lighter-duty version of each marque (1500, Silverado) are down on the year so far, with -15.5%% and -4.6%, respectively. Heavy-duty sales for the Silverado HD were up 29.8% in July 2025.
Sydney Morning Herald
9 hours ago
- Sydney Morning Herald
‘Let us see the audits': Kmart faces legal battle over alleged links to Uyghur forced labour
Kmart has defended its ethical sourcing practices after being served with a court challenge to provide documents on how it has dealt with two clothing factories that have been linked to forced labour in Xinjiang, an autonomous territory in north-western China. The Australian Uyghur Tangritagh Women's Association (AUTWA) filed a Federal Court application on Monday seeking documentation from Kmart about what it knew of two clothing suppliers linked to the Xinjiang Uyghur Autonomous Region, where the Chinese government has systematically persecuted the Uyghur population and other Turkic minorities. Represented by law firms Maurice Blackburn and the Human Rights Law Centre, AUTWA is looking to determine whether Kmart followed its ethical sourcing procedures and monitored risks to mount a future legal case that would allege Kmart breached consumer law by making misleading and deceptive statements. In a statement, a Kmart spokesperson said the retailing giant had been corresponding with AUTWA's lawyers for more than 12 months and had provided 'extensive details' of its ethical sourcing program that had been in place for 15 years. Loading 'We invited the AUTWA to meet with us several times to help us understand their concerns,' said the Kmart spokesperson. 'Suppliers in the Kmart ethical sourcing program are regularly monitored through activities including our site visits, audit programs and investigations if we receive any reports or complaints of concern. 'Where we learn of an alleged non-compliance with our code through an audit, site visit or complaint, or by a worker in a supplier's factory, we take action to investigate and remediate the issue, working collaboratively with the supplier. 'When remediation isn't possible due to the supplier's refusal to do so, or repeated failures to make meaningful changes, we will exit the relationship.' However, Maurice Blackburn principal lawyer Jennifer Kanis said the Australian retailer's response during the 12 months of correspondence was 'not satisfactory' because it had repeated public assertions about its ethical sourcing without providing any evidence.
