Tesla is set to report second-quarter 2025 results on July 23. Estimates show earnings of 40 cents per share and revenues of $22.61 billion. Expectations for the year include a revenue decline of 3.3% and an EPS drop of 26%. Tesla has missed earnings estimates in three of the last four quarters.

The company’s struggles are reflected in its recent vehicle deliveries. Tesla delivered 384,122 vehicles globally in Q2, a 13.5% decline year over year. This contrasts with General Motors, which saw sales double in the same period. China’s BYD Co Ltd also outperformed Tesla in BEV sales.

Tesla’s automotive revenues are expected to decline more than 6% in the upcoming quarter. However, the Energy Generation and Storage business is showing growth, with estimated revenues of $3.03 billion. Operating and capital expenses remain high, impacting profits and cash flows.

Year-to-date, Tesla shares have fallen over 23%, underperforming the industry. With demand softening and competition increasing, Tesla faces challenges. The upcoming earnings report may disappoint, reflecting the company’s struggle to rekindle demand and Musk’s controversial behavior. Investors may want to reduce exposure to Tesla.

Read more at NASDAQ: Buy, Sell or Hold TSLA Stock? Key Tips Ahead of Q2 Earnings