Tesla Inc fell short of Wall Street’s expectations in one of the carmaker’s worst quarters in years, a sign of the toll that rising competition and a backlash against chief executive Elon Musk have taken on the company.

Adjusted earnings were 40 cents a share, Tesla said yesterday, just below
the average analyst estimate. Revenue fell 12% to US$22.5 billion (NZ$37.2b), the sharpest decline in at least a decade.

However, the company said it continued to move forward with its plans for robotaxis and more affordable vehicles, providing a measure of relief for investors. That came “despite a sustained uncertain macroeconomic environment resulting from shifting tariffs, unclear impacts from changes to fiscal policy and political sentiment”, it said.

The revenue drop was due to a decline in vehicle deliveries, lower regulatory credit revenue and a lower average selling price for its cars. Tesla also reported a decline in energy generation and storage revenue. It did, however, see a boost from the business segment that includes its supercharging network.

The shares were little changed towards the end of extended trading in New York. The stock’s value has fallen 18% since the start of the year, though it has largely rebounded from its lows in March and April.