ISTANBUL

American electric car (EV) manufacturer Tesla's net income fell 16% year-on-year in the second quarter of this year, falling short of the market expectations, according to financial results of the firm released on Thursday.

The net profit of the EV giant was $1.2 billion in the second quarter, down from $1.4 billion in the same period last year.

Tesla's revenues also dropped 12% in the second quarter of this year compared to the same period last year, falling to $22.5 billion from $25.5 billion in the second quarter of 2024.

The company's earnings per share, which were $0.4 in the second quarter of 2024, fell to $0.33 in the same period this year.

Both Tesla's revenue and profit fell short of market expectations in the second quarter of this year.

Tesla produced 410,244 cars globally in the second quarter of 2025 and delivered 384,122. The company's vehicle production remained mostly unchanged year-over-year during this period, while the number of vehicles delivered by Tesla were down by 13%.

A statement from Tesla noted that the company's first robotaxi service launched in Austin in June, emphasizing that while the service's scope will initially be limited, its approach to autonomy will allow the company to increase profitability.

The statement noted that the first production run of a more affordable model began in June. It noted that mass production of this model is planned to begin in the second half of the year, with the "Semi" and "Cybercab" models expected to enter mass production in 2026.

"Despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment, we continue to make high value investments in CapEx and R&D, while ensuring a strong balance sheet," it said.

Tesla has been experiencing a backlash as the competition is increasing, particularly from Chinese EV manufacturers that offer newer and cheaper models.

Elon Musk, the CEO, is also facing political blowback, with waves of anti-Tesla rallies hurting the company's image and affecting sales.

In the latest US presidential election, Musk was one of the largest financial backers of President Donald Trump.

In order to reduce the size and capability of federal agencies, particularly the regulators in charge of his firms' oversight, he spearheaded the Trump administration's Department of Government Efficiency (DOGE) effort. In May, Musk's official employment with DOGE came to an end.

The relationship between Trump and Musk fell out over Musk's criticism that the "big, beautiful bill" would increase the US budget deficit.

Trump fired back by claiming the billionaire will “head back home to South Africa” if federal subsidies on electric vehicles are cut.

The president also said he will look into deporting Musk and that the Department of Government Efficiency (DOGE) should look into the subsidies Musk's companies have received.

Tesla also was the worst-performing company among the "Magnificent Seven" this year.