The biggest drop in revenue in recent years: Tesla published its financial report for Q2 2025

Tesla released its financial report for the second quarter of 2025, which became further evidence of how much Elon Musk's political activism has harmed his flagship company.

In the second quarter, Tesla suffered a significant financial downturn: revenue decreased by 12% compared to the same period last year and amounted to $22.5 billion, profit - $1.17 billion, which is 16% less.

The automotive segment performed even worse, with sales falling 16.6%. The company was partially saved by $439 million from the sale of regulatory credits, but this part of the income will soon disappear due to the Trump administration's policy change, which eliminates penalties for exceeding emissions.

Tesla delivered 384,122 cars, down 14% from a year ago. Operating profit fell 42% to less than $1 billion.

By the way, in the report, Tesla mentions that it began production of a cheaper model in June, and mass production is scheduled for the second half of 2025. Unfortunately, this is not a new car, but simplified versions of the Model 3 and Y. The company is also working on the Tesla Semi and Cybercab, which may be released in 2026.

Tesla's decline has been attributed to Elon Musk's political activism, which has made the brand toxic to some customers. Meanwhile, Tesla is cutting prices and launching promotions in an attempt to sustain sales ahead of the expected end of government subsidies for electric vehicles in the US in the fall.

Recall, it recently became known that Tesla sales in California (the largest electric car market in the US) decreased by 21%, which negatively affected the entire electric car segment.