The company has devoted resources to autonomous driving rather than developing new models to attract car buyers.

Tesla’s core auto business—responsible for three-quarters of its $100 billion in revenue—has been sputtering in 2025. First-quarter profits plunged 71%, kept afloat only by $595 million in regulatory credit sales. Analysts expect another tough earnings report on July 23, forecasting a nearly 10% revenue dip and a 20% drop in profit.