Tesla’s earnings hit a new low, with largest revenue drop in years

Here is a 188-word summary of the news article: Tesla reported its second-quarter financial results, showing a significant decline in revenue and profits compared to the previous year. The company's net income dropped 16% year-over-year to $1.17 billion, while revenue fell 12% to $22.5 billion. Tesla's automotive revenue, which accounts for the majority of its business, slid 16.6% from the same period in 2024. The earnings report highlights the challenges Tesla is facing, including a 14% decline in vehicle deliveries, reduced regulatory credit sales, and economic uncertainty due to the Trump administration's policies. Tesla cited falling sales, lower average vehicle prices, and a decline in energy generation and storage revenue as factors behind the poor results, but did not mention Elon Musk's political activities as a contributing factor. Despite Tesla's work on self-driving cars and robots, the company's core business of manufacturing and selling electric vehicles is under pressure as competition intensifies and federal incentives are set to expire. In response, Tesla has resorted to offering discounts and financing incentives to boost sales. The sudden reversal in Tesla's fortunes has left investors and supporters unsettled, as the company serves as a cautionary tale of what can happen when a CEO becomes distracted by political pursuits.