The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits fell sharply again in the latest quarter.

Tesla revenue dropped 12%, and profits slumped 16% in the three months through June as buyers continued to steer clear, and in some cases, turn to more affordable competitors' offerings. "The perception of Elon Musk,

Tesla's shares declined 1.74% for week, two days after posting lower profits for a third straight quarter amid increased competition and loss of tax credits.

Elon Musk’s political controversies are widely believed to have damaged Tesla’s image. This, together with stronger and stronger competition, has resulted in the decline we’re witnessing in 2025. Furthermore, the groundbreaking Cybertruck was expected to take over the electric pickup segment, but that hasn’t happened.

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Follow live news and analysis of the EV maker's quarterly results, which are due Wednesday after the market closes. Tesla may include updates about robotaxis and a lower-priced car.

Sales for the company are down all over the world, despite its recent introduction to new markets, like India. Now, as Tesla struggles to keep its head above water, another significant revenue stream is about to run dry,

Tesla’s earnings and revenue both fell by double-digit percentages following the biggest sales drop in the company’s history. The automaker also faces a number of financial headwinds, including the loss of a $7,