Tesla warns of “rough quarters” moving forward in mobile electric vehicle policy
Elon Musk may have left the White House, but billionaires can’t fully collect the Trump administration, at least not on Tesla. Tesla warned Musk on Tesla’s quarterly earnings call yesterday (July 23) that the billionaire proposed a plan to get his struggling company to develop a plan with the help of self-driving cars and robots.
Tesla’s stock has surged and political opposition with its customers and investors, down 9% today after shares fell 20% in 2025, after electric vehicle companies (EVs) missed Wall Street’s expectations for revenue and profits in the April-June quarter. Tesla’s quarterly sales fell 12% year-on-year to $22.5 billion, while its net income was $1.4 billion, compared with $1.8 billion last year.
Tesla’s revenue is often strengthened by sales of regulatory credits, with traditional automakers raising revenue from electric vehicle companies to avoid huge federal fines for failing to meet emission standards. However, this economic fine will be lifted under the trouble of a recent spending bill (Tesla) passed by U.S. President Donald Trump. The company’s credit sales have begun to decline, down 50% year-on-year to $439 million in the second quarter. “A big one [Beautiful] There are many changes in Bill that will affect our business in the short term. ” Tesla Chief Financial Officer Vaibhav Taneja told analysts.
In addition to eliminating emissions fines, Trump’s bill will also repeal tax credits of up to $7,500. Taneja warned that given that the tax breaks will be repealed by the end of September, those interested in obtaining Tesla should “place orders immediately.”
Musk’s company has also been financially hit by the Trump administration’s automatic taxation. Although Tesla, like all auto companies, has largely escaped tariffs on imported cars due to its domestic manufacturing industry, the imposition of imported auto parts is on the leverage. “Although we are trying to manage these impacts, we are in an unpredictable environment in terms of tariffs,” Taneja said.
Although Musk played a major role in leading the administration’s cost-cutting Department of Government Efficiency (DOGE), Musk broke into the government with Trump earlier this year and has been a supporter of the presidential bill ever since. But his political entanglement had a lasting impact on Tesla, alienating some EV customers, and given his external heart, major investors criticized Musk’s leadership.
This sentiment combines with competitors such as Byd gained in Tesla’s largest market and penetrates the company’s sales. Tesla has seen its vehicle delivery times last a second straight quarter between April and June, while European sales have also had a similar downward trajectory in recent months. Its presence in China is also marked by cooling income.
Musk attributes this decline to obstacles to Tesla’s vision of autonomy. The company launched its first self-driving Teslas last month in Austin, Texas, inviting a select group of analysts and social media influencers to test its robots. Musk said the electric vehicle company hopes to bring self-drivers to half of the U.S. population by the end of 2025 before the regulations are approved. The CEO noted that regulatory hurdles in Europe and China are currently blocking similar expansion plans, and he claimed that sales in both regions will improve once such hurdles are overcome.
Tesla increasingly forms its future as a future defined by autonomous robots and humanoid robots. If executed correctly, these risks will make Tesla “the most valuable company in the world,” Musk told analysts. In addition to rapidly expanding its robotic footprint, the billionaire said Tesla hopes to eventually produce 100,000 Optimus Primes per month over five years. “Once you start mass autonomy in the second half of next year, of course, by the end of next year, I would be surprised if Tesla’s economics isn’t very compelling,” he said.
