Elon Musk in trouble as Tesla posts steepest quarterly revenue decline

Tesla has reported its most significant quarterly revenue drop in more than ten years, raising new concerns about CEO Elon Musk’s leadership and the electric vehicle (EV) maker’s future.

According to its second-quarter earnings report released after markets closed, Tesla brought in $22.5 billion in revenue from April to June, down from $25.5 billion during the same period last year.

The bulk of the revenue decline stemmed from a 16% drop in automotive sales, which Tesla attributed to a fall in vehicle deliveries.

Earlier this month, the company revealed that deliveries dropped 14% year-over-year for the second quarter, undercutting expectations for a rebound.

Investors have grown increasingly uneasy about Musk’s shifting focus. His recent decision to form a new political party and his growing involvement in US politics, particularly his public feud with President Donald Trump, have raised questions about how much time and energy he can devote to Tesla.

His political connections and controversial public positions, including support for Germany’s far-right AfD party, have also begun to erode Tesla’s brand image in key markets.

Adding to the instability are recent executive departures, including a senior leader responsible for sales and manufacturing across North America and Europe.

The loss of trusted leadership has only deepened investor concerns.

Moreover, the recent launch of a revamped Model Y SUV, Tesla’s best-selling vehicle, failed to reverse the downward trend, marking the company’s second consecutive quarter of revenue decline.