TSLA: Tesla Stock Nosedives as Quarterly Revenue Drops 12%. Musk Cites Bigger Woes Ahead.

EV maker’s shares fell about 5% in after hours and are down more than 12% on the year, ahead of the bell. Time to buy?

📉 Tesla Tumbles as Revenue Drops 12%

• Tesla stock TSLA fell 5% in after-hours trading Wednesday after the EV giant posted a 12% drop in quarterly revenue and 16% decline in net income. While earnings per share came in line at $0.40, the top-line slump — to $22.5 billion — left investors rattled.
• Automotive revenue plunged 16% to $16.7 billion, driven by the company’s 14% quarterly delivery drop. Tesla sold 384,122 vehicles in Q2, about 60,000 fewer than the same period last year. Demand, competition, and tariff headwinds all took their toll.
• CEO Elon Musk added to the gloom, warning “we probably could have a few rough quarters.” That’s not the sort of autopilot guidance Wall Street wants to hear.

🚨 Tax Credit Boosts Expiring

• CFO Vaibhav Taneja pointed to higher tariffs and expiring EV tax credits (a key profit driver) as looming threats to profitability. US and global policy winds aren’t exactly at Tesla’s back right now.
• Regulatory credit sales — a quiet lifeline for Tesla’s margins — fell sharply to $439 million, down from $890 million a year ago. That’s a steep decline in easy money.
• Despite the macro and margin pain, Tesla says it’s still on track to launch new models this year and a lower-cost EV next year. Investors might take that with cautious optimism — or a raised eyebrow.

🧐 Bumpy Road or Buy the Dip?

• Tesla shares are now down more than 12% year-to-date, ahead of Thursday’s bell, underperforming the S&P 500 and some of its fellow “Magnificent Seven” megacaps. The EV hype cycle has cooled — and the fundamentals are now front and center.
• The big question for investors: Is this just a rough patch for the EV king, or a sign of deeper structural challenges in the EV space? With new entrants everywhere and margins under fire, Tesla’s edge isn’t what it used to be.
• Still, for long-term bulls, any selloff in Musk’s empire can be a trigger-happy moment. For others, it’s a time to wait — and watch for whether the future model roadmap turns into revenue reality.