Tesla's quarterly revenue fell by the largest amount in at least a decade, but its gross margin remained above average expectations

Tesla's quarterly financial report fell short of Wall Street's expectations, one of the worst quarterly results in recent years, showing the impact of increasingly fierce market competition and public pressure on CEO Musk on the company.

Tesla said in a statement on Wednesday that adjusted earnings per share were 40 cents, slightly below the average analyst estimate. Revenue fell 12% to $22.5 billion, the largest drop in at least a decade.

However, there were no new major negatives in the financial report, and the company said it was still advancing its plans for driverless taxis and affordable models, slightly alleviating investors' concerns. Tesla said the macroeconomic environment continued to face uncertainties, mainly due to tariff adjustments, political factors and changes in fiscal policies.

The reasons for the decline in revenue include a decrease in the number of car deliveries, a decrease in regulatory points revenue, and a decrease in average selling prices. The company also reported a decline in revenue from energy generation and energy storage businesses. However, business segments including the supercharging network have grown.

As of 4:48 p.m. New York time, Tesla shares had given up earlier gains. As of Wednesday's close, Tesla's stock price has fallen 18% this year, but has rebounded significantly from lows in March and April.

Some investors choose to ignore the fluctuations in Tesla's financial data, and they are more focused on Musk's business vision for artificial intelligence, humanoid robots and autonomous driving technology.

Adam Crisafulli, founder of market intelligence firm Vital Knowledge, wrote in a research report, "If you think Tesla is just a car company at its core, then this financial report is indeed bad; but if you think Tesla is a giant in the field of AI and robotics, then the second quarter financial report may not change your view of its prospects."

Polarization

Since Musk supported Trump, the polarization trend of Tesla's brand has become more obvious. During his brief involvement in government work, Musk's push to cut government spending has angered traditional left-leaning consumers and caused some investors to worry that the project will distract them. In the past few weeks, several analysts have lowered their expectations for Tesla.

However, Tesla's gross profit margin is higher than the average analyst expectation, indicating that its profitability remains resilient.

Investors are still eagerly awaiting more details about the driverless taxis, including the pace of the service's development in Austin, Texas, and the pace of expansion to other cities. The company said it will continue to promote the optimization and expansion of the business, but did not disclose the timeline or specific regions.

Ben Kallo, a senior analyst at Baird, said in an interview, "The forward guidance this time is very limited. The company provided even fewer details on the outlook than last quarter. "Overall, there is no big news," he said.