Core Viewpoint - Analysts anticipate a significant decline in Tesla's earnings and revenue for the second quarter, following a historic drop in vehicle deliveries attributed to Elon Musk's recent political affiliations and their consequences [1][3]. Financial Projections - Tesla is projected to report earnings per share of $0.40 and revenue of $22.28 billion for Q2, reflecting year-over-year declines of 23% and 13%, respectively [2]. - The company's operating profit is expected to decrease by 31% year-over-year to $1.1 billion, with the core automotive business anticipated to plunge by 16.5% [2]. Delivery Performance - Tesla reported a 13% decline in second-quarter deliveries, marking a record year-over-year drop that exceeded the previous largest decline recorded in Q1 [3]. Analyst Insights - Wedbush Securities analyst Dan Ives noted that the current earnings setup for Tesla is markedly different from three months ago, emphasizing that Tesla's AI initiatives will be a focal point during the earnings call [4]. Earnings Call Information - Tesla's earnings call is scheduled to be livestreamed at 5:30 p.m. EDT on its investor relations website [5]. Market Context - Tesla's stock experienced a surge in recent months after Musk's role with the Trump administration ended, although it has declined over 4% in the past month. New car registrations for Tesla fell in key markets including Europe, China, and California [6]. - Despite challenges, there is some optimism surrounding Tesla due to the limited launch of its robotaxi driverless vehicle service in Austin, Texas, in June [6]. Industry Outlook - Tesla and Alphabet are among the first of the "Magnificent Seven" stocks to report Q2 earnings, with expectations for earnings growth of 14% for these firms compared to 3.5% for the remaining S&P 500 companies [7].

Core Insights - Tesla reported vehicle deliveries of 384,122 in Q2, falling short of Wall Street's expectations of 387,000 [1] - This represents a 13% decline compared to Q2 2024, marking the largest year-over-year drop in vehicle deliveries on record [2][4] - The decline in sales coincides with Elon Musk's deteriorating relationship with former ally Donald Trump, which has negatively impacted Tesla's popularity [3][6] Sales Performance - Tesla's vehicle deliveries decreased by 13% from the first half of 2023 to the same period in 2025 [4] - The company has experienced a decline in new car registrations in Europe and significant drops in key markets like China and California [6] Management Changes - Elon Musk fired the head of North America and Europe operations, Omead Afshar, and will now directly oversee sales in these regions [5] Upcoming Financials - Tesla is set to report Q2 earnings on July 23, with forecasts indicating a 15% year-over-year decline in earnings per share to $0.44 and a 12% drop in revenue to $22.8 billion [7]