Tesla’s Sales Fall Most in a Decade, Alphabet Boosts Guidance for 2025 Spending

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Tesla Inc. fell short of Wall Street’s expectations in one of the automaker’s worst quarters in years, a sign of the toll that rising competition and a backlash against Chief Executive Officer Elon Musk have taken on the company.

Adjusted earnings were 40 cents per share, Tesla said Wednesday in a statement, just below the average analyst estimate. Revenue fell 12% to $22.5 billion, the sharpest decline in at least a decade.
Still, the report was free of new bombshells and the company said it continues to move forward with robotaxi and affordable-vehicle plans, providing a measure of relief for investors. That comes “despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment,” Tesla said.
The revenue drop was due to a decline in vehicle deliveries, lower regulatory credit revenue and a lower average selling price for its cars. Tesla also reported a decline in energy generation and storage revenue. The company did see a boost from the business segment that includes its supercharging network.

Meanwhile, Alphabet Inc. reported strong second-quarter revenue growth but said 2025 capital expenditures will be $10 billion greater than an earlier forecast, intensifying pressure on the company to justify investments it’s making to keep up in the AI race.
Shares slipped about 1.6% in late trading after the search giant, which owns Google, said capital expenditures will rise to $85 billion, compared with the $75 billion the company guided earlier this year.

Second-quarter sales, excluding partner payouts, climbed to $81.7 billion, the company said Wednesday in a statement. Analysts had projected $79.6 billion on average, according to data compiled by Bloomberg.

Today's show features:

• Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, discusses Tesla earnings and Elon Musk’s future
• Brent Thill, Senior Technology Research Analyst with Jefferies, and Bloomberg Intelligence Global Head of Technology Research Mandeep Singh break down Alphabet’s latest earnings
• Mike Cordonnier, Co-Founder, CEO and President of Carlsmed on the first day of trading for his company, with Bloomberg News Equities Reporter Natalia Kniazhevich
• Kristi Govella, Senior Adviser and Japan Chair at the Center for Strategic and International Studies (CSIS), on the US-Japan trade deal

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