Tesla Continues Its Financial Struggles Even After Elon Musk's White House Exit

Tesla’s financial position is getting worse, arsenic nan fallout continues from CEO Elon Musk’s politics.

The electrical automaker reported Wednesday that some gross and profits fell successful nan 2nd 4th of nan twelvemonth compared to a twelvemonth earlier. It’s nan second-straight negative net report from nan company, which has suffered harm to its marque and go a lightning rod for thoroughfare demonstrations.

While Tesla is still nan No. 1 seller of electrical vehicles successful nan U.S. by a wide margin, nan net study shows a deteriorating business pinch nary evident speedy hole for Musk, nan world’s wealthiest person.

Revenue was $22.5 cardinal for nan 3 months ending June 30, down 12% from a twelvemonth earlier, while net were 40 cents per share, down 23% from a twelvemonth earlier.

Musk has angered group crossed nan governmental spectrum this year, first pinch his clasp of far-right authorities and his chainsaw-wielding tenure arsenic an advisor to President Donald Trump, and past erstwhile he and Trump had a high-profile falling-out. Musk has vowed to commencement a governmental party but truthful acold has not followed done successful immoderate visible way.

The net study covers Tesla’s finances for April, May and June — a play that overlapped pinch Musk’s tenure successful nan White House. Musk left his authorities job May 30.

Shares successful Tesla were level successful after-hours trading instantly aft nan net report.

Tesla had already warned this period that vehicle deliveries were sagging, down 14% successful nan 2nd 4th from a twelvemonth earlier. It was nan 2nd consecutive 4th of falling deliveries arsenic Tesla faces not only harm to its marque but besides expanding competition, including from Chinese electrical conveyance makers.

Musk has tried to support shareholders happy pinch developments connected different fronts, including by trying to motorboat a nascent robotaxi service successful Austin, Texas, though that work is mini and still uses quality information observers successful nan vehicles. Musk has besides hyped humanoid assistants arsenic a early imaginable Tesla product, but nary person shipped. On Monday, Tesla opened a diner and drive-in successful West Hollywood, California.

Musk’s companies are besides progressively intertwined. He merged his societal media app, X, pinch his AI startup, xAI, successful March, and his rocket company, SpaceX, is an investor successful xAI. This month, Tesla began integrating xAI’s chatbot, Grok, into Tesla vehicles, days aft Grok went connected neo-Nazi tirades. Musk has said that while he does not support merging Tesla and xAI, he will put a potential Tesla investment into nan institution up for a shareholder vote.

Wall Street analysts had expected Tesla gross of $22.74 cardinal and net per stock of 43 cents, according to an mean of estimates compiled by LSEG.

Tesla executives, perchance including Musk, are scheduled to clasp a convention telephone pinch analysts astatine 5:30 p.m. ET to talk nan financial results and their outlook.

Musk is profoundly unpopular pinch nan American public, pinch 58% having an unfavorable position of him and 33% having a favorable view, according to a polling mean tally by statistics writer Nate Silver.

And much protests are connected nan horizon. Tesla Takedown demonstrations proceed to hap weekly, and much than 30 “Tesla Takedown” protests are planned for this weekend, according to a public schedule of nan events. A objection is scheduled for Saturday astatine nan newly opened Tesla Diner.