Tesla’s financial position is getting worse, as the fallout continues from CEO Elon Musk’s politics. The electric automaker reported Wednesday that both revenue and profits fell in the second quarter of the year compared to a year earlier.

The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits fell sharply again in the latest quarter

Total revenue decreased by 12% from one year earlier, to $22.4 billion, while revenue derived from car sales dropped 16% over the second quarter of 2025 compared to a year ago, the earnings showed. The fresh data covered a period following the onset of Trump's auto tariffs in early April.

ANALYSIS: In his feud with Donald Trump, the world’s richest person has the distinct disadvantage of not possessing nukes. But that doesn’t mean he has no cards to play, writes Io Dodds

As Amazon's star rises, Elon Musk's political pivot may have cost SpaceX billions in potential Golden Dome contract funding.

The new US missile defense system will explore alternatives to Elon Musk's SpaceX, with Amazon. com's Project Kuiper among the main contenders.