The fallout from Elon Musk's plunge into politics a year ago is still hammering his Tesla business as both sales and profits dropped sharply again in the latest quarter.

Tesla still hasn’t released a lineup of newer, cheaper EVs to compete with China’s BYD for markets outside the US.

Nelson downgraded the company’s stock to a neutral rating in April. But even some of the Tesla bulls on Wall Street are saying that the time for Musk to take action is running out.

Tesla has offered low-interest loans and other incentives to try to revive sales, but these efforts have depressed the company’s profits. Tesla’s newest model, the Cybertruck pickup, has been a flop. The company sold 4,300 Cybertrucks in the second quarter, according to Cox Automotive, a 50 percent decline from a year earlier.

Good morning. Tesla falls short of Wall Street estimates as scandal and competition take a toll. Adani Group scraps its super app ambitions. And Nintendo’s Switch 2 notches another high score. Listen to the day’s top stories.

Elon Musk warned that Tesla could face "a few rough quarters," as it weathers shifting tariffs and the end of EV tax credits in the US.

The S&P 500 hit a high on Trump trade deals. Tesla fell late as Elon Musk sees "rough quarters." Google rose on earnings.

The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits fell sharply again in the latest quarter.

AI positivity drove Alphabet's shares to new heights, but Musk's "rough quarters" warning saw Tesla's share price slump

Tesla's latest earnings report reveals a significant sales decline, raising concerns over its future amid increasing competition and CEO Elon Musk's polarising leadership