Tesla's slump deepens as autonomy momentum fades. Explore the impact of tariffs, earnings slowdown, and what it means for TSLA's $300-range volatility.

Tesla’s Q2 sales decline is its worst this decade, but there is one bright spot. The company's energy storage business is quietly booming.

The electric vehicle giant reported a 12% year-over-year drop in revenues, which fell to $22.5B for the April to June quarter, according to its earnings report released Wednesday. That marks the sharpest quarterly revenue decline in more than a decade, according to Reuters.

ET with analyst reactions Shares of Tesla (NASDAQ:TSLA) are straddling the flatline in postmarket trading as the company’s second quarter results were not as bad as Wall Street expected and avoided a second consecutive top- and bottom-line miss with profits in-line with expectations.

Tesla’s battery business has been feeling the pain, too. For a while, this was a growth area for the company, albeit one with a relatively minor contribution to the bottom line. During Q2 2025, Tesla’s energy generation and storage division brought in $2.8 billion in revenue, a 7 percent decline from the same period in 2024.

Elon Musk’s political controversies are widely believed to have damaged Tesla’s image. This, together with stronger and stronger competition, has resulted in the decline we’re witnessing in 2025. Furthermore, the groundbreaking Cybertruck was expected to take over the electric pickup segment, but that hasn’t happened.

Tesla's more affordable model started production in June and is a cheaper Model Y, the company said on its Q2 earnings call.

Tesla stock is trading lower today after missing Q2 estimates. While CEO Elon Musk yet again repeated that TSLA would one day become the world’s most valuable company, markets are not buying that argument,