Tesla's stock plummets after disappointing earnings call

In the United States, Tesla's stock experienced a significant decline of 9% on July 24, 2025, following the release of disappointing earnings data the previous evening. The earnings report indicated that both the company's earnings and revenue had dropped by double-digit percentages, marking the most significant decline in sales in Tesla's history. Moreover, the automaker is facing challenges such as the impending loss of a $7,500 tax credit for electric vehicle buyers, which will take effect in October, and the decrease in income from regulatory credit sales that have generated $11 billion since 2019. Despite these pressing financial issues, Tesla's CEO, Elon Musk, focused on discussing the company's ambitious long-term vision during the earnings call. He touched upon the development of Tesla's long-promised robotaxi service and the humanoid robot named Optimus. However, Musk's limited discussion of immediate solutions to current problems disheartened many investors and analysts who were expecting more concrete plans to address the company's challenges in the near term. According to Garrett Nelson, an analyst at CFRA Research, investors have been remarkably forgiving towards Tesla in light of the difficulties the company is facing but are now beginning to lose patience due to the lack of detailed information available regarding progress towards alleviating these issues. Musk has a history of making bold claims about Tesla's future technologies, as evidenced by his assertions that the robotaxi service would become operational within a year starting in 2019. In June 2025, Tesla did roll out its robotaxis in a limited capacity in Austin, Texas, primarily to friends and employees of the company. However, that rollout was only the first step, and Musk's announcement during the earnings call that the service would be accessible to half of the U.S. population by the end of the year seems overly ambitious. To fulfill this promise, Tesla must obtain regulatory approval to operate in two states weekly for the remainder of the year. Market analysts such as Ben Kallo from Baird express mixed feelings regarding Tesla's potential to meet the ambitious timelines and cost targets for its robotaxi plan, stating it may take until 2028 for a fully functional product. Investors are starting to focus more on the company’s immediate business performance due to continued sluggishness in the auto market. Overall, while there remains a degree of optimism about the robotaxi and AI technologies Musk has outlined, the increasing turbulence of Tesla's current financial situation raises concerns about the company's ability to fulfill its goals in a timely manner.