The Q2 Bombshell No One Wanted
Tesla’s Q2 2025 earnings report just dropped like a brick — and it wasn’t pretty. Revenue fell 12% year-over-year to $22.5 billion, while non-GAAP EPS slid 23% to $0.40. Both numbers missed Wall Street’s expectations. That’s not exactly the kind of update that gets bulls running.
The company attributed the declines to weakening vehicle deliveries and a drop in regulatory credit sales. Basically, with EV tax credits drying up due to changes in U.S. federal law, other automakers don’t need to buy “carbon points” from Tesla anymore. That’s a major dent in a once-profitable side hustle.
Musk’s Mood: “Tough Quarters Ahead”
Elon Musk didn’t sugarcoat it. On the earnings call, he warned of “a few challenging quarters” as the company navigates through a less-subsidized EV market. Federal tax reforms have slashed EV incentives, making Tesla vehicles more expensive for buyers and reducing demand.
And the market didn’t take the news lightly — Tesla shares dropped over 4% after hours, closing near $317.80. That’s a rough look considering TSLA is already down 15% year-to-date.
Did Tesla Stock Split? Let’s Clear the Confusion
But here’s why people keep asking. Tesla has split its stock twice in recent years — once in August 2020 (5-for-1) and again in August 2022 (3-for-1). These splits were aimed at making the shares more accessible to retail investors. After all, a $900 share price is a little hard to swallow for the average Robinhood trader.
Is a Comeback Possible?
Tesla isn’t down for the count — not by a long shot. It’s still the EV kingpin with the biggest global market share (though BYD is catching up fast in China). But with government support fading and competition heating up, Tesla has a tighter road ahead.
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