Tesla Q2 2025: Between Tailwinds for Robotaxis and Headwinds From Politics

Tesla met expectations for the stock market in the second quarter of 2025, but did not exceed them. Earnings per share were $0.40—exactly what analysts had predicted, but 23% lower than the previous year's figure. Revenue fell to $22.5 billion, which was 12% lower than the same quarter last year, but slightly surpassed estimates. Declining vehicle prices, lower revenues from regulatory emission credits, and a weaker energy business were particularly burdensome. Operating income shrank by 42%, and free cash flow plummeted to just $146 million—a...