Tesla’s core auto business—responsible for three-quarters of its $100 billion in revenue—has been sputtering in 2025. First-quarter profits plunged 71%, kept afloat only by $595 million in regulatory credit sales. Analysts expect another tough earnings report on July 23, forecasting a nearly 10% revenue dip and a 20% drop in profit.

Tesla reported EV sales in the second quarter down by 13% over last year. The Elon Musk-owned automaker had two straight quarters of declines for first time. The dismal report comes as Musk's feud with President Trump heats up again.

Tesla's electric vehicle sales plunged in the second quarter as the company continues to face a backlash from CEO Elon Musk's political turn. Why it matters: EVs are an essential source of cash flow for Tesla as it pursues ambitious projects like self-driving cars and humanoid robots.