Tesla Faces "Rough Quarters" Ahead Amid EV Credit Phaseout

Tesla reported its second straight quarterly sales decline - revenue dropped 12% year-over-year to $22.5 B, with profit per share at $0.40, missing expectations. Shares fell nearly 5%, prompting CEO Elon Musk to caution that Tesla may experience "a few rough quarters" due to the loss of the $7,500 U.S. EV tax credit, waning regulatory credit sales, and intensifying global competition (Reuters).

How Tesla Plans to Bounce Back

• Autonomy on deck: The company expects revenue from robotaxis and self-driving services to begin late next year, bolstering long-term profitability.
• New budget EV: Production has begun on a lower-cost Model Y variant, with volume rollout slated for late 2025.

Why It Matters for EVWorld Readers

• Higher near-term costs: Loss of federal tax credits may increase Tesla EV pricing, affecting affordability.
• Market pressure: Competition from cheaper EVs - particularly from China - is reshaping the landscape.
• Regulatory uncertainty: Tax credit changes can significantly influence EV adoption rates and consumer confidence.
• Long-term optimism: Autonomous vehicle milestones could become a new revenue driver beyond car sales.

EVWorld Takeaway

Tesla''s Q2 results reflect growing pains from expired incentives and credit market shifts - yet the company's strategic bet on autonomy and affordability aims to restore momentum. For buyers and clean-tech followers, the transition underscores how policy, pricing, and innovation intersect in shaping the future of electric mobility.

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