Elon Musk's Tesla posts steepest sales decline in over a decade as EV demand slumps
The company reported the steepest decline in quarterly revenue in more than a decade, with a 12% fall, as it battles strong competition from cheaper electric vehicles and a backlash against CEO Elon Musk's political views.
Revenue fell to $22.5 billion for the April-June quarter from $25.50 billion a year earlier. Analysts on average were expecting revenue of $22.74 billion, according to data compiled by LSEG.
3 Tesla reported the steepest decline in quarterly revenue in more than a decade, with a 12% fall.
William – stock.adobe.com
The company reported a second straight quarterly revenue drop despite rolling out a much-awaited refreshed version of its best-selling Model Y SUV that investors had hoped would rekindle demand.
Much of the company's trillion dollar valuation hangs on its bet on its robotaxi service – a small trial of which was started in Austin, Texas, last month – and developing humanoid robots.
3 The company battled strong competition from cheaper electric vehicles and a backlash against CEO Elon Musk's political views.
REUTERS
3 Musk has a falling out with President Trump and formed a new political party.
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However, investors are worried about whether Musk will be able to give enough time and attention to Tesla after he locked horns with President Trump by forming a new political party this month. He had promised weeks earlier that he would cut back on government work and focus on his companies.
A series of high-profile executive exits, including a longtime Elon Musk confidant who oversaw sales and manufacturing in North America and Europe and left Tesla last month, is also adding to the concerns.
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