Tesla Stock Drops 5% After Q2 Report — Musk Warns of “Tough Quarters Ahead”

[cryptoenthusiast]

Tesla just posted its Q2 2025 earnings, and the numbers hit harder than expected.
Shares are down 5% after the EV giant reported a 16% drop in net profit — and Elon Musk isn’t sugarcoating it: "Several tough quarters ahead," he told investors.
The Breakdown:

Stock Price:

    Closed July 23 at $332.56

    Down to $314.46 in premarket trading

Net Profit:

    $1.17B, down from $1.4B in Q2 2024 (–16%)

Revenue:

    Total: $22.5B (–12% YoY)

    Automotive: $16.7B (–16%)

    Energy: $2.8B (–7%)

Deliveries:

    Q2 EV deliveries: 384,120 units, marking a 13% drop for the second consecutive quarter

🧠 What’s Behind the Drop?

According to Musk, the storm clouds are forming mainly because of cuts in EV subsidies. With government support drying up in multiple markets, Tesla’s facing tighter margins and shrinking demand in key regions.

During the investor call, Musk said the company is bracing for a few rough quarters, and analysts aren’t ruling out more downside pressure — especially if global EV momentum continues to cool.
Something to Watch:

Tesla did confirm it began pilot production of a more affordable EV model in June, with mass production scheduled for the second half of 2025. That could help drive demand again — but it’s not going to fix Q3 or Q4 pain.
🧾 TL;DR:

🚗 Profit down 16%, revenue down 12% YoY

📉 Stock dropped 5% on earnings

🛑 Musk says multiple “tough quarters” ahead

📦 EV deliveries keep falling

🧪 New budget model in the works, but won’t hit mass scale until late 2025

Holding TSLA through the turbulence or waiting for better entry?
Think the budget model can turn it around?

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