Tesla has offered low-interest loans and other incentives to try to revive sales, but these efforts have depressed the company’s profits. Tesla’s newest model, the Cybertruck pickup, has been a flop. The company sold 4,300 Cybertrucks in the second quarter, according to Cox Automotive, a 50 percent decline from a year earlier.

The electric-vehicle maker’s net income plunged 16% in the second quarter, marking another quarter of steep declines as sales continue to fall.

Tesla saw a 17% growth in its services business, but it was not enough to close the gap in falling EV sales, fewer regulatory credits, and a decline in solar and energy storage sales.

Tesla Chief Executive Elon Musk said on Wednesday that US government cuts in support for electric vehicle makers could lead to a few rough qua

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.

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.

Tesla reported another quarter of reduced profits after Elon Musk’s stint in the Trump administration. The president’s tax bill creates new business challenges.

Tesla (NASDAQ:TSLA) shares tumbled over 5% in early U.S. trading on Thursday following CEO Elon Musk’s cautionary remarks about challenging times ahead for the electric vehicle maker amid softening demand and diminishing government incentives.