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.

Tesla saw registrations in its largest U.S. market tumble by over 20%, marking a seventh straight quarterly drop in the Golden State. The company’s retro‑themed diner in California may be drawing record crowds,

The Texas-based EV manufacturer could be subject to punishment for its advertising practices in the Golden State.

Tesla's stock is down 18% so far this year, and some analysts wonder if the company will lower its full-year forecast when it reports results after Wednesday's closing bell. Other key topics include management's commentary on vehicle demand and the robotaxi rollout.

Tesla stock crept higher on Wednesday, off daily lows, with earnings due just after the 4 p.m. close. Shares were up 0.2% in late trading at $332.91, while the S&P 500 was up 0.7%. Most stocks were higher in the session after President Donald Trump announced a trade deal with Japan.