Tesla says it has started initial production of a more affordable model and expects volume production in the second half of the year.

Analysts estimate that the company earned $1.2 billion from April to June, according to Bloomberg, down from $1.4 billion a year ago. Sales are expected to have fallen to $22.6 billion from $25.5 billion in the second quarter of 2024. Tesla has not reported an increase in quarterly profit since the third quarter of 2024.

The second quarter apparently kicked off Tesla’s transition from leading in electric vehicles and renewable energy to the new vistas of artificial intelligence and robotics. We’ve got the first bit of the transition alright,

Tesla has said it will build cheaper cars and win approval for its self-driving software in Europe this year, as it tries to revive its struggling business. Elon Musk's electric vehicle (EV) firm told investors it had started "first builds of a more affordable model in June" while posting a slump in car deliveries and shrinking profits.

Tesla missed revenue and earnings expectations in Q2 2025 and reported another drop in vehicle deliveries — but one key area of its balance sheet remains rock solid, offering a quiet win amid the turbulence.

Tesla’s battery business has been feeling the pain, too. For a while, this was a growth area for the company, albeit one with a relatively minor contribution to the bottom line. During Q2 2025, Tesla’s energy generation and storage division brought in $2.8 billion in revenue, a 7 percent decline from the same period in 2024.

Waymo’s robotaxis are fully driverless and expanding fast, while Tesla’s service is still limited and invite-only. The gap is bigger than you think.

Two Business Insider reporters visited Hollywood's new Tesla Diner within 24 hours of its grand opening. It was unusual, but exceeded expectations.