Tesla CEO Elon Musk said Tesla sales might face a few rough quarters now that the US has ended electric vehicle (EV) support, including the $7,500 federal EV tax credit. The company just reported a 12% drop in quarterly revenue, now at $22.5 billion, while vehicle deliveries fell 13.5% compared to last year—its biggest sales dip in over ten years. Shares took a hit, sliding nearly 5%, as fewer incentives, higher tariffs, and stronger competition weighed down performance.
During Tesla’s second-quarter (Q2) earnings call, Musk pointed to recent policy changes under President Trump as the main reason for the weaker EV market. He said the company expects deliveries to stay soft through Q4 2025 and into the first half of 2026. Still, he remains confident that things will turn around once Tesla scales up its autonomous services by late next year.
Concerns around the Tesla stock price prediction 2025 grew as the stock tumbled about 8–9%. Analysts split in opinion—UBS and CFRA urged caution, while Wedbush’s Dan Ives stayed optimistic, pointing to Tesla’s long-term vision for AI and robotaxis.
Slowing US EV Sales Force Tesla to Rethink Strategy
To stay competitive, Tesla has begun producing a more affordable version of the Model Y, though its full rollout is moving slower than expected. This move is seen as a direct response to slowing US EV sales and pressure from lower-cost rivals.
Another challenge: sales from regulatory credits dropped nearly 51% last quarter, putting extra strain on profits. Tesla CFO Vaibhav Taneja said that production of the lower-cost model should ramp up next quarter, which could help boost Tesla sales.
Looking ahead, the company is betting big on its autonomous tech, robotaxi services, and energy products. A limited robotaxi test has already launched in Austin, with broader approvals still pending across the US and Europe. Musk says scaling up autonomy could open up new revenue streams by late 2026.
The end of EV incentives might slow Tesla sales and US ev sales in the near term and shake up the Tesla stock price prediction 2025, but Tesla’s shift toward affordability and autonomy could help the company bounce back next year.
