TeslaCEO Elon Musk had a message for investors on an earnings call Wednesday: Buckle up, the next few quarters are likely to be "tough" before things get better. Second-quarter results reported Wednesday were slightly below Wall Street's already bleak expectations.
The electric car maker reported second-quarter revenue of $22.5 billion, compared with expectations of $22.64 billion, its worst quarterly revenue decline in at least the past decade. Adjusted earnings per share, a key measure of profitability, came in at 40 cents per share, compared with Wall Street expectations of 42 cents.
In its earnings report, Tesla cited a "continued uncertain macroeconomic environment" due to "the unclear impact of tariff changes, changes in fiscal policy and political sentiment."
Musk said Tesla is in a "weird transition period" as it deals with the expiration of incentives for electric vehicles and the broader regulatory environment for autonomous driving.
"Does that mean we might have a couple of tough quarters? Yes, we might have a couple of tough quarters," Musk said on an earnings call with analysts, adding that was not a guarantee.
He said he expects Tesla's economics to be "very compelling" by the end of next year.
Tesla also unveiled its latest and much-anticipated plan to launch a more affordable car, which Musk said would be similar to the Model Y.
"We will continue to expand our vehicle offerings, including debuting a more affordable model in June, with mass production planned for the second half of 2025," the company said. Tesla said it expects the vehicle to be available to the public in the fourth quarter.
Investors have been bracing for a challenging quarter. Tesla already announced its second-quarter deliveries on July 2, which were lower than analysts' expectations. The company delivered 384,000 vehicles, compared with expectations of 389,400 vehicles.
During the earnings call, Musk also talked about his stake in Tesla - "I think I should have enough control over Tesla to make sure it goes in a good direction, but not so much that if I go crazy, I won't be kicked out."
He also provided an update on the expansion of the robotaxi service, the progress of the Optimus humanoid robot, and more.