The end of U.S. government support for electric vehicles could mean “a few rough quarters” for Tesla, CEO Elon Musk told investors Wednesday.
The statement came as the electric automaker reported bad financial news: Its net income dropped 16 percent in the second quarter of 2025, compared to the same period a year ago. President Donald Trump’s tariffs also cost the company hundreds of millions of dollars between April and June.
Musk said that a low-cost vehicle — something that Tesla has promised for years but never delivered — would go into production later this year but provided no details about its features or price.
Tesla is in a pickle — much of it of Musk’s own making. His company’s vehicle sales are falling, in part because potential customers have drifted away in the wake of Musk’s support for Trump and his part in dismantling federal agencies.
