Elon Musk, as shown in this composite picture, addressed a joint session of Congress with former President Donald Trump on May 30, 2025. This event occurred at an especially difficult moment for Tesla. The electric vehicle maker announced falling automotive sales for the second quarter in a row. Consequently, its stock price plummeted by more than 30%. Following that Tesla news, shares fell as much as 6% in premarket trading. This steep drop reflects a significant loss of confidence from investors about the company’s operations and growth outlook.
In their most recent quarter’s earnings release, Tesla revealed they experienced a 16% yoy drop in automotive revenue. It came in at $16.7 billion. This hugely disappointing jump comes along with a miss on both Q2’s top and bottom line expectations. Musk was right to see that greater trials still awaited. He added that the company can expect a few more challenging quarters as federal EV tax credits are on course to expire, tax credits that had previously spurred consumers to purchase EVs.
The news conference, held at the White House, issued a perplexing preview of the thorny relationship between Musk and Trump. Once allies, the two have more recently found themselves at odds over Trump’s proposed spending bill, which Musk has called “morally wrong.” Musk’s unusual public break was the latest to excite speculation about his evolving political aspirations. He aims to create his own political movement to fill the gaps that he believes exist in the current political structure.
Despite the ongoing struggles at Tesla, Musk remains a prominent figure in both the automotive industry and the political arena. His commitment to EV innovation continues to turn the market on its head in other ways. Yet, in light of this recent downturn in sales, serious questions remain about the company’s immediate future. Analysts and investors will be eagerly watching to see how Musk works on addressing these challenges, all while continuing to pursue his political ambitions.