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Tesla Inc. fell short of Wall Street’s expectations in one of the automaker’s worst quarters in years, a sign of the toll that rising competition and a backlash against Chief Executive Officer Elon Musk have taken on the company.

Adjusted earnings were 40 cents per share, Tesla said Wednesday in a statement, just below the average analyst estimate. Revenue fell 12% to $22.5 billion, the sharpest decline in at least a decade.
Still, the report was free of new bombshells and the company said it continues to move forward with robotaxi and affordable-vehicle plans, providing a measure of relief for investors. That comes “despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment,” Tesla said.
The revenue drop was due to a decline in vehicle deliveries, lower regulatory credit revenue and a lower average selling price for its cars. Tesla also reported a decline in energy generation and storage revenue. The company did see a boost from the business segment that includes its supercharging network.

Meanwhile, Alphabet Inc. reported strong second-quarter revenue growth but said 2025 capital expenditures will be $10 billion greater than an earlier forecast, intensifying pressure on the company to justify investments it’s making to keep up in the AI race.
Shares slipped about 1.6% in late trading after the search giant, which owns Google, said capital expenditures will rise to $85 billion, compared with the $75 billion the company guided earlier this year.

Second-quarter sales, excluding partner payouts, climbed to $81.7 billion, the company said Wednesday in a statement. Analysts had projected $79.6 billion on average, according to data compiled by Bloomberg.

Today's show features:

Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, discusses Tesla earnings and Elon Musk’s future
Brent Thill, Senior Technology Research Analyst with Jefferies, and Bloomberg Intelligence Global Head of Technology Research Mandeep Singh break down Alphabet’s latest earnings
Mike Cordonnier, Co-Founder, CEO and President of Carlsmed on the first day of trading for his company, with Bloomberg News Equities Reporter Natalia Kniazhevich
Kristi Govella, Senior Adviser and Japan Chair at the Center for Strategic and International Studies (CSIS), on the US-Japan trade deal

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Tesla’s Sales Fall Most in a Decade, Alphabet Boosts Guidance for 2025 Spending

Bloomberg Businessweek