Tesla's Q2 performance is bleak, marking the largest sales decline in a decade. The company reaffirms its plans for new vehicle launches and the mass production of Cybercab, with guidance absent | Earnings Report Insights

In the second quarter, Tesla's revenue decreased by 12% year-on-year, and EPS fell by 23%, both exceeding expectations for decline. Revenue from "carbon selling" has declined for four consecutive quarters; automotive business revenue dropped by 16% year-on-year, marking two consecutive quarters of double-digit declines. The energy business achieved a record high gross profit for a single quarter, and the supercharging network drove a 17% increase in service and other revenues. Tesla reiterated plans to launch new vehicles this year as scheduled, with the Robotaxi product Cybercab set for mass production next year. It stated plans to trial a more affordable vehicle in the first half of this year and begin mass production in the second half, with the Semi truck also set for mass production next year. The second quarter marks a milestone in its transformation into a leader in AI and robotics services, preparing for a broader rollout of FSD in China, pending regulatory approval. The impact of tariffs, fiscal policies, and political sentiment remains unclear, but investment in R&D and capital expenditures continues. The conference call estimated tariff costs at about $300 million, and Musk warned that the situation could be severe in the coming quarters. Tesla's stock price initially rose and then fell in after-hours trading, dropping over 4% at one point