**Tesla (TSLA) News Today: Q2 Earnings and CEO's "Rough Quarters" Warning**
Tesla is facing a challenging period, as evidenced by its latest second-quarter earnings report. The company announced its third consecutive quarter of declining profits, with revenue down 12% and net income dropping 16% compared to the same period last year. This has led to a significant dip in the stock price.
**Key takeaways from the Q2 earnings report and related news:**
* **Financial Performance:** Tesla's revenue for the quarter was \$22.5 billion, a 12% decrease year-over-year. Profits fell to \$1.17 billion, a 16% drop. This performance was impacted by a sharp 51% decline in revenue from regulatory credits.
* **Musk's Outlook:** CEO Elon Musk warned investors that the company may face "a few rough quarters" ahead. He attributed this to a "weird transition period" where the company is losing significant U.S. tax incentives for electric vehicles.
* **Focus on Robotaxis:** Despite the current financial headwinds, Musk emphasized that the company's long-term strategy is focused on autonomous driving and robotics. He said he expects the robotaxi business to have a "material impact" on Tesla's economics by the end of next year. The company recently launched a limited robotaxi service in Austin, Texas, and aims to expand to "half the population of the U.S. by the end of the year," subject to regulatory approval.
* **New "Affordable" Model:** Tesla confirmed that its new, more affordable entry-level model is a stripped-down version of the Model Y. Production began in June, with volume production expected to ramp up in the second half of the year and sales starting in the fourth quarter.
* **Market Response:** Following the earnings report and Musk's comments, Tesla's stock tumbled. This comes amid a broader market where investors are also weighing factors like trade policy and the performance of other tech companies.
