Tesla reported second-quarter earnings that fell short of analysts' expectations, with revenue of $22.50 billion compared to the anticipated $22.64 billion, marking a 12% decline from the previous year. The company also reported adjusted earnings per share (EPS) of $0.40, below the expected $0.42. This earnings miss has led to a decline in Tesla's stock price, reflecting investor concerns about the company's ability to maintain growth amid increasing competition and changing market dynamics.

Despite the earnings miss, Tesla remains focused on its future plans, including the production of a more affordable model slated for the second half of 2025 and the anticipated launch of its robotaxi service in 2026. However, the company faces challenges such as a significant drop in revenue from regulatory credits and potential impacts from new legislation affecting EV tax credits. The CFO indicated that the recent passage of the 'One Big Beautiful Bill' could lead to a pull forward in sales, but also warned of potential rough quarters ahead as the market adjusts.