Tesla’s Q2 profit drop highlights intensified competition and slowing growth, leading to stock volatility and sales declines, while future projects face delays and regulatory scrutiny.

Tesla’s profit in Q2 dropped by more than 40% from last year due to increased competition and slowing EV sales growth.

Tesla’s stock fell 12% on Wednesday, with a year-to-date decrease of about 1% after recovering from a 44% drop earlier this year.

Reported adjusted income was $1.8 billion, or 52 cents per share, below the 61 cents expected by analysts and down from 91 cents a year ago.

This marks the second consecutive quarter of year-over-year sales declines, a first for Tesla, except for an early pandemic dip.

Elon Musk announced a delay in the release of robotaxi details and a halt on the Mexican assembly plant project due to potential tariffs.

Musk remains optimistic about the future of electric transportation but acknowledges short-term challenges from other automakers.

Tesla faces federal investigations regarding Full Self Driving claims and a past DOJ inquiry, with uncertain current status.