Tesla Profit Slumped In Second Quarter, A Sign Musk Is Hurting The Brand

CBS Bay Area

July 24, 2025

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

Tesla revenue dropped 12%, and profits slumped 16% in the three months through June as buyers continued to steer clear, and in some cases, turn to more affordable competitors' offerings.

"The perception of Elon Musk, its chief executive, has rubbed the sheen right out of what once was a darling and soaring automotive brand," Forrester analyst Dipanjan Chatterjee said in a research note, in which he called Tesla "a toxic brand that is inseparable from its leader."

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