The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits fell sharply again in the latest quarter.

The fallout from Elon Musk's dive into politics a year ago is still hammering Tesla sales, as profits drop sharply in latest quarter.

Tesla Inc. warned that provisions in President Donald Trump’s $3.4 trillion fiscal package will pose meaningful challenges for the EV maker in the next several months.

The electric vehicle giant reported a 12% year-over-year drop in revenues, which fell to $22.5B for the April to June quarter, according to its earnings report released Wednesday. That marks the sharpest quarterly revenue decline in more than a decade, according to Reuters.

Elon Musk's Tesla Diner, a classic diner and EV charging station all in one, opened Monday in West Hollywood, California.

The Tesla diner and drive-in had a surprise opening on Monday, serving a mix of milkshakes and charging stations

Analysts estimate that the company earned $1.2 billion from April to June, according to Bloomberg, down from $1.4 billion a year ago. Sales are expected to have fallen to $22.6 billion from $25.5 billion in the second quarter of 2024. Tesla has not reported an increase in quarterly profit since the third quarter of 2024.

SpaceX has warned investors about the risk to the company from its own CEO. In documents attached to a tender offer to investors, SpaceX said there were “risk factors” associated with CEO Elon Musk’s potential return to politics,