The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits fell sharply again in the latest quarter.

Tesla has offered low-interest loans and other incentives to try to revive sales, but these efforts have depressed the company’s profits. Tesla’s newest model, the Cybertruck pickup, has been a flop. The company sold 4,300 Cybertrucks in the second quarter, according to Cox Automotive, a 50 percent decline from a year earlier.

The tech company reports its third quarter of declining profits in a row, amid the ongoing backlash against Elon Musk's foray into politics.

Tesla revenue dropped 12%, and profits slumped 16% in the three months through June as buyers continued to steer clear, and in some cases, turn to more affordable competitors' offerings. "The perception of Elon Musk,

Tesla saw a 17% growth in its services business, but it was not enough to close the gap in falling EV sales, fewer regulatory credits, and a decline in solar and energy storage sales.

Tesla's profit slid 16% in the second quarter, it said Wednesday. CEO Elon Musk will face investors in the company's earnings call at 4:30 p.m. CT.

Tesla, Inc.'s Q2 results disappoint with a sales drop, but Model Y sales in China and EV leadership signal potential to rebound. Click for my TSLA earnings update.

The EV manufacturer faces slowing sales, political backlash and mounting competition as Elon Musk refocuses on the company's future

The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits fell sharply again in the latest quarter.

Elon Musk’s political controversies are widely believed to have damaged Tesla’s image. This, together with stronger and stronger competition, has resulted in the decline we’re witnessing in 2025. Furthermore, the groundbreaking Cybertruck was expected to take over the electric pickup segment, but that hasn’t happened.