Tesla's Q2 Earnings Disappoint, Shares Take a Hit

Tesla's financial performance for the second quarter of fiscal 2025 fell short of Wall Street's expectations, leading to a significant drop in its share price. The electric vehicle giant reported a 12% decline in revenue, totaling $22.5 billion, and adjusted earnings of $0.40 per share, which was below the anticipated $0.42.

Political Tensions Add to Tesla's Challenges

Amidst these financial setbacks, Tesla also found itself at the center of political tensions between its CEO, Elon Musk, and US President Donald Trump. However, President Trump later clarified that he does not intend to harm Musk's businesses, a statement that came shortly after Tesla's shares hit an intraday low, dropping 9.11% to trade at $302.27.