Tesla falls out of trillion-dollar club after ugly earnings

Tesla ([TSLA](https://finance.yahoo.com/quote/TSLA)) stock came under pressure Thursday after it posted an earnings and revenue miss in the second quarter and CEO Elon Musk hinted at a "few rough quarters" amid mounting challenges for the automaker.

Tesla reported second quarter revenue of $22.50 billion vs. $22.64 billion expected (per Bloomberg consensus), a 12% drop compared with the $25.05 billion reported a year ago. Tesla posted adjusted earnings per share of $0.40 vs $0.42, with operating income coming in at $923 million vs. $1.23 billion expected.

Tesla's revenue from the sale of regulatory credits fell to $439 million from $890 million a year earlier, and will continue to drop following passage of the One Big Beautiful Bill Act (OBBB), the company said. Musk spent months blasting the bill, but Trump signed it into law earlier this month.

Tesla stock closed [down 8.2% on Thursday](https://finance.yahoo.com/news/tesla-stock-slides-after-earnings-miss-musk-warns-of-few-rough-quarters-221407333.html).