Tesla’s financial position is getting worse, as the fallout continues from CEO Elon Musk’s politics. The electric automaker reported Wednesday that both revenue and profits fell in the second quarter of the year compared to a year earlier.

Analysts estimate that the company earned $1.2 billion from April to June, according to Bloomberg, down from $1.4 billion a year ago. Sales are expected to have fallen to $22.6 billion from $25.5 billion in the second quarter of 2024. Tesla has not reported an increase in quarterly profit since the third quarter of 2024.

Tesla missed revenue and earnings expectations in Q2 2025 and reported another drop in vehicle deliveries — but one key area of its balance sheet remains rock solid, offering a quiet win amid the turbulence.

Tesla revenue slipped 12% year over year in the second quarter of 2025 the company's July 23 earnings release showed. The company took in $22.5 billion in revenue, down from $25.50 billion in the second quarter of 2024. It is the company's largest revenue drop in over a decade, according to Reuters.

Tesla’s battery business has been feeling the pain, too. For a while, this was a growth area for the company, albeit one with a relatively minor contribution to the bottom line. During Q2 2025, Tesla’s energy generation and storage division brought in $2.8 billion in revenue, a 7 percent decline from the same period in 2024.

Shares of the EV maker pared losses and traded close to flat in afterhours trading, following results that showed net income plunging 16% and automot

WIRED stopped by the new Tesla Diner in Hollywood to talk to people who still stan Elon Musk. “I want to go to Mars, and he is going to take us,” one visitor told us.

But even now, as Trump and Musk seemingly aren't friends anymore (for the moment), and Tesla is staring down the barrel of yet another consecutive dismal fiscal quarter, Tesla investors don't care. For them, Tesla is a future play. Tesla derived 90% of its 2024 revenue and 94% of its gross margin from auto sales.