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Tesla CEO Elon Musk spoke with US President Donald Trump in front of reporters in the White House Oval House on May 30, 2025 in Washington, Colombia County.
Kevin Dietsch | Ghetto images
At TeslaSales of vehicles decrease, profits are thinning and revenue from regulatory credit sales are ready to dry due to republicans led by Republicans Changes to PolicyS
In the past CEO Elon Musk Futuristic promises have convinced investors to look at past and bottom numbers.
Not now.
After another rather gloomy Profit This week, Musk told analysts about the call that Tesla’s electric vehicles will soon become without a driver, making money for the owners while they sleep. He also said that the Tesla Robotaxi service, which the company has recently started testing with limited capacity in Austin, Texas, will expand to other countries in order to reach half of the US population by the end of the year, “assuming we have regulatory approvals.”
It didn’t matter.
Tesla shares fallen 8% on Thursday, as investors focused on the direct challenges facing the company, including the rapid rise in EV competitors at a lower price, especially in China, and a political reaction against Musk, which harmed the Tesla brand in the US and Europe.
Automobile sales decreased by 16% compared to the year in the second quarter for the EV manufacturer, with slight sales numbers sinvading Europe and CaliforniaS Musk said, To President Donald Trump Tariffs.
The action bounced some on Friday, winning 3.5%, but still ended the week down the week and now fell by 22% this year, the tallest performance of Tech’s Megacaps. NASDAQ has increased by 1% for the week and is over 9% in 2025, closing on a record on Friday.
“Look, we love robotaxis. And robots,” writes Canaccord Genosis analysts, who recommend that you buy Tesla shares in a note after the profit report. “Over time, Tesla is well positioned to take advantage of these opportunities for the future ahead.”
However, analysts said they were focused on a profit and loss report by writing: “But we also love growth, here and now. We need P&L dynamics to turn.”
Jefferies analysts have identified the profit update as “a little boring”. And Goldman Sachs said Tesla’s robotaxes’ efforts are “still small” with limited technical points.
Tesla did not answer a request for comment.
Musk he had previously had called yourself “Pathologically optimistic,” managed to swing to shareholders and send the shares that rise at times with promises of self -driven cars, humanoid robots and more affordable EVS
But after a decade of omitted self -imposed deadlines in autonomous driving, Wall Street watches Tesla lag behind Alphabet Waymo in the US and Baidu Apollo go to China.
In the shareholding deck of Tesla, the company said that the second quarter marked the beginning of “the transition from running electric vehicles and the renewable energy industry to become a leader in AI, robotics and related services.” The company did not offer new guidelines for growth or profit for next year.
Regulatory obstacles
Business interior On Friday, Tesla told employees that his Robotaxi service could start in the area of San Francisco Bay immediately after this weekend.
But Tesla has not applied for permits that will be required to manage a service without a California driver, CNBC confirmed. The company will first need permits from the State Department of Motor Vehicles and the California Commission for Utilities (CPUC).
CPUC told CNBC on Friday that with existing Tesla permits, it can only manage human -controlled vehicle service rather than carry travelers at Robotaxis.
Waymo -free vehicles are waiting for a traffic light in Santa Monica, California, on May 30, 2025.
Daniel Cole | Reuters
In terms of revenue, Musk and other Tesla Execs claim that the company is working on regulatory approvals to launch in Nevada, Arizona, Florida and other markets, in addition to San Francisco, but does not offer details of what will be required.
Within Austin, the company said its Robotaxi service has traveled 7,000 miles and that Tesla limits robotaxis to roads with a speed limit of 40 miles per hour. The Austin service includes a small fleet of about 10 to 20 Mode Y vehicles, equipped with the latest company’s latest management systems.
Tesla Robotaxis relies on remote supervision from employees at the Customer Service Center and Human Human Safety Head of the front passenger seat, ready to intervene if necessary.
Compare that with what Alphabet said to his Profit from the second quarter Call the same day as Tesla results.
“The Waymo driver has now autonomously chased over 100 million miles on public roads. The team is testing in more than 10 cities this year, including New York and Philadelphia,” Alfabet said. Waymo, meanwhile, has become significant enough that Alphabet added a category to its other betting descriptions in its last quarterS
“Revenues from other bets are mainly generated by the sale of autonomous transport services, healthcare and internet services services,” the submission said. The other bet segment remains relatively small, with revenue being $ 373 million in the quarter.
Regardless of the skepticism of investors, Musk is more than ever.
On Friday the worst person in the world published On its social network X, which believes Tesla will someday cost $ 20 trillion. During the profit earlier during the week, he said that when it comes to AI for cars and robots, “Tesla is actually much better than Google” and “Much better than anyone in the real world AI”.
Correction: The Waymo driver has already autonomously gone over 100 million miles on public roads, according to Alphabet. The previous version mistakenly raised the number of kilometers.
