The earnings release covered the end of Musk's tenure at the White House.
In this March 22, 2022, file photo, Tesla CEO Elon Musk speaks during the official opening of the new Tesla electric car manufacturing plant near Gruenheide, Germany.Tesla's profits fell 16% over a three-month period ending in June that overlapped with the end of chief executive Elon Musk's tenure in the White House and his ensuing public clash with President Donald Trump, an earnings release on Wednesday showed.
Total revenue decreased by 12% from one year earlier, to $22.4 billion, while revenue derived from car sales dropped 16% over the second quarter of 2025 compared to a year ago, the earnings showed.In a statement on Wednesday, Tesla touted a "strong balance sheet," but acknowledged a "sustained uncertain macroeconomic environment resulting from shifting tariffs."Musk's position at the White House, which ended in May, set off demonstrations at Tesla dealerships worldwide in protest of his effort to slash government spending as leader of the Department of Government Efficiency. President Donald Trump delivers remarks during a meeting with Philippine President Ferdinand Marcos Jr. in the Oval Office at the White House, July 22, 2025 in Washington.After Musk stepped away from the federal government, he sharply criticized Trump and stridently opposed Republicans' signature spending legislation. Recently, Musk has continued to slam the Trump administration over its handling of documents related to disgraced financier and convicted sex offender Jeffrey Epstein.Meanwhile, Tesla has faced heightened competition from domestic and foreign carmakers rolling out electric vehicles. Chinese EV-maker BYD outperformed Tesla in total car sales for the first time ever last year. MORE: Trump admin live updates: Rubio announces investigation into Harvard's eligibility for Exchange Visitor Program As car sales have slowed, Musk has touted a future autonomous car service, dubbed robotaxis, as a growth area for the business. Last month, Tesla launched a limited version of the self-driving taxi service in Austin, Texas. The rollout marked a milestone for the company's self-driving taxi aspirations, but limitations placed on the vehicles and a series of apparent miscues suggest the technology remains far from wide adoption, some analysts previously told ABC News.
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