The only bright spot in Tesla’s financial report was an increase in cryptocurrency assets to $1.24 billion.

Once the shining star of the electric vehicle industry, Tesla is going through a stormy period.

Recent financial reports paint a worrying picture: auto sales plummeted 16% and profits plunged, marking the second consecutive quarter of sales missing analysts’ expectations.

Now, the only thing Elon Musk can be proud of is the amount of cryptocurrency assets that have increased over time, an ironic number for the electric car empire that was once a global icon.

Revenue plummets, profits shrink

Specifically, revenue from the automotive segment – Tesla’s mainstay – fell sharply by 16% year-on-year to $16.7 billion, while total revenue reached $22.5 billion, lower than analysts’ expectations ($22.74 billion). Net profit also declined to $1.17 billion.

According to information from LSEG, Tesla announced adjusted earnings per share of only 40 cents, lower than the expected 43 cents.

Notably, revenue from the automotive segment was only $16.7 billion, down significantly from $19.9 billion in the same period last year. Even revenue from the sale of carbon credits – a once-important source of revenue – fell sharply from $890 million to $439 million.

Not only did Tesla miss forecasts, it also saw its deliveries fall 14% in the second quarter of 2025 to just 384,000 vehicles, a sign that its appeal in the market is fading, while rivals – especially from China – are dominating the low-cost, high-tech electric vehicle segment.

Tesla shares fell more than 4% in after-hours trading shortly after the results were announced. Comments from CEO Elon Musk and CFO Vaibhav Taneja on rising tariff costs and the end of federal electric vehicle tax credits added to the bearish sentiment.

Billionaire Elon Musk even admitted that “we may have a few tough quarters.”

It should be noted that the $7,500 tax credit for electric vehicles in the US will expire at the end of September 2025 under the newly passed law. This is a significant blow to Elon Musk’s empire as Tesla has long benefited greatly from this preferential policy to keep its prices competitive.

In addition, new tariffs imposed by US President Donald Trump forced the company to restructure its supply chain, leading to disruptions in US vehicle supply in the current quarter.

Tesla shares have fallen 18% year to date, making it the worst performer among the “Big Tech” group, while the Nasdaq is still up about 9%.

Notably, the stock price only began to fall sharply after the financial results announcement, when both CEO Elon Musk and CFO Vaibhav Taneja admitted that Tesla could continue to experience a few difficult quarters ahead.

Undeniably, Elon Musk’s controversial personal image is also a negative factor. His public support for Donald Trump’s re-election campaign and his extreme political views in Europe have led to a wave of boycotts against Tesla in many key markets.

A decade ago, Tesla had a near monopoly on the premium electric vehicle market. But now, many traditional automakers have entered the game with a variety of electric models. In particular, Chinese rivals are gaining ground with affordable electric vehicles that incorporate advanced self-driving technology as a standard feature, putting a lot of pressure on Tesla.

Intense

Tesla is betting big on ambitious projects amid the current economic downturn. The company began testing a more affordable electric vehicle in June, with plans to mass produce it in the second half of 2025. This is seen as a strategic move to expand market share and compete more effectively with rivals.

However, while Tesla is still struggling with the problem of low-cost cars, Chinese car manufacturers such as BYD, NIO or XPeng have launched a series of products under 30,000 USD, integrating advanced self-driving technology as a standard feature.

Tesla’s self-driving and robotic products – hailed by Elon Musk as the future – remain just promises that have yet to materialize.

As usual, Elon Musk has continued to fan the flames of his long-term vision, with a focus on robotaxi and the humanoid robot Optimus. He claims Tesla’s robotaxi could make money for its owners while they sleep, and that the Optimus robot will be sophisticated enough to work as a factory worker or even a babysitter.

Still, the experimental robotaxi service in Austin is very limited and lags behind rivals like Alphabet’s Waymo, which has a widespread commercial service.

On self-driving technology, Musk aims to provide autonomous ride-hailing services to about half the US population by the end of this year. But Tesla’s self-driving promises have been repeatedly missed over the past decade, and regulatory hurdles remain a significant challenge.

Although Tesla said it is expanding its Supercharger network (up 18% year-over-year) and starting to produce cheaper models, that is still not enough to restore market confidence in the short term.

Amid the difficulties, there were some notable bright spots. Tesla’s services and other business, which includes revenue from EV charging stations, saw gross profit increase 17% year-over-year, driven by increased usage of its Supercharging stations, with more than 2,900 new charging stations added.

In addition, the value of Tesla’s digital assets also increased significantly, from $722 million a year ago to $1.24 billion.

Still, the fact that Tesla is facing challenges remains.

Once a symbol of innovation, Tesla is now facing its most serious test since the pandemic: maintaining market confidence as growth slows, competition tightens, and policies become less favorable.

As the promises of robots and self-driving cars remain distant, the big question is whether Tesla is betting too much on the future while the present becomes increasingly uncertain?