July 24, 2025, 09:36 IST /2 min read Credits: Getty Images Tesla is bracing for "a few rough quarters" as declining electric vehicle (EV) sales, shrinking margins, and reduced U.S. government support weigh on the company. The Elon Musk-led automaker announced its second quarter results for the calendar year on Wednesday evening. Overall revenue fell 12% to $22.5 billion. The EV maker posted a 16% year-on-year decline in automotive revenue for the April-June quarter, dropping to $16.7 billion. Adjusted net income slid 23% to $1.4 billion, or 40 cents per share. Net income by standard accounting fell to $1.2 billion. Shares fell over 4% in after-hours trading. CEO Elon Musk admitted that the company may face financial turbulence until its autonomous driving ambitions start to generate significant revenue by late 2025. However, there were not any questions addressed on the difficulties company faces due to Trump-Musk feud. Tesla’s vehicle deliveries dropped 14% year-on-year to 384,000 units, the second consecutive quarterly decline. Revenue per vehicle also fell to $42,231, down $500 from the previous quarter. While sales of Model 3 and Y dropped 12%, high-end models including the Cybertruck plunged 52%. Fortune India Latest Edition is Out Now! Read Now The sales slump comes as Tesla loses ground to global rivals, especially China’s BYD, which is close to overtaking Tesla as the world’s largest EV maker. Political backlash against Musk, stemming from his support for Donald Trump and controversial policy moves, has also dented demand in key markets. Recommended Stories