Tesla's market cap fell below $1 trillion, but it still reflects investors' assumptions of enormous future growth.

TeslaTSLA sank more than 8% in Thursday's stock market, giving up key levels, in the wake of second-quarter earnings and CEO Elon Musk's conference call comments. However, Cathie Wood and Ark Invest saw that as an opportunity to buy more of their favorite stock.

Tesla reported Q2 2025 revenue of $22.5-billion and adjusted EPS of $0.40, roughly in line with consensus but slightly below Roth’s estimates of $23.6-billion and $0.41. Non-GAAP auto gross margins came in strong at 15.

Tesla’s battery business has been feeling the pain, too. For a while, this was a growth area for the company, albeit one with a relatively minor contribution to the bottom line. During Q2 2025, Tesla’s energy generation and storage division brought in $2.8 billion in revenue, a 7 percent decline from the same period in 2024.

General Motors says it lost more than $1 billion in the second quarter because of U.S. tariffs. Stellantis lost more than double that in the first half of the year and blamed a sizeable chunk of that on tariffs, as well.

Tesla's slump deepens as autonomy momentum fades. Explore the impact of tariffs, earnings slowdown, and what it means for TSLA's $300-range volatility.

Tesla’s Q2 sales decline is its worst this decade, but there is one bright spot. The company's energy storage business is quietly booming.