Tesla Inc
- Tesla Inc. surged 8.2% to $305.30 after the electric vehicle maker reported second-quarter 2025 results.
Revenue decreased to $25.5 billion from $25.7 billion, net income declined to $1.4 billion from $2.1 billion, and diluted earnings per share fell to 40 cents from 60 cents a year ago.
The company struggled with electric vehicle sales, and chief executive Vaibhav Taneja highlighted economic and regulatory challenges in the months ahead.
"The One Big Bill has a lot of changes that would affect our business in the near term," Taneja said on the earnings call to investors.
The company's revenues are likely to be lower in the third quarter as the government's subsidies to purchase new electric vehicles expire, and the new tax and spend bill eliminates the fines for not meeting fuel economy targets.
Tesla derives significant revenues from selling its regulatory credits to competitors, as other electric vehicle makers prefer to purchase credit instead of paying fines.
The new tax and spending bill eliminates the fines, essentially killing the regulatory credit marketplace operated by Tesla.
In the second quarter, Tesla's total vehicle revenue fell 16%, while energy generation and storage revenue decreased 7%, but services and other revenue jumped by 17%.
Jul 26, 2025
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