Tesla missed revenue and earnings expectations in Q2 2025 and reported another drop in vehicle deliveries — but one key area of its balance sheet remains rock solid, offering a quiet win amid the turbulence.

Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world.

Tesla’s sales plunge over the last 18 months has been a stunning turn for a company that recorded only one quarterly year-over-year sales drop before 2024. And the company faces significant trouble ahead.

Analysts estimate that the company earned $1.2 billion from April to June, according to Bloomberg, down from $1.4 billion a year ago. Sales are expected to have fallen to $22.6 billion from $25.5 billion in the second quarter of 2024. Tesla has not reported an increase in quarterly profit since the third quarter of 2024.

WIRED stopped by the new Tesla Diner in Hollywood to talk to people who still stan Elon Musk. “I want to go to Mars, and he is going to take us,” one visitor told us.

Shares of the EV maker pared losses and traded close to flat in afterhours trading, following results that showed net income plunging 16% and automot

Tesla has said it will build cheaper cars and win approval for its self-driving software in Europe this year, as it tries to revive its struggling business. Elon Musk's electric vehicle (EV) firm told investors it had started "first builds of a more affordable model in June" while posting a slump in car deliveries and shrinking profits.

Tesla revenue slipped 12% year over year in the second quarter of 2025 the company's July 23 earnings release showed. The company took in $22.5 billion in revenue, down from $25.50 billion in the second quarter of 2024. It is the company's largest revenue drop in over a decade, according to Reuters.