Tesla Inc. (TSLA) shares plummeted after disappointing Q2 results fell short of expectations. Adjusted EPS was $0.40, missing the expected $0.42, with revenue at $22.5 billion versus $22.64 billion expected. Sales were down 12% YoY, the steepest decline since 2012, highlighting challenges in Tesla’s core EV business.

Direxion Daily TSLA Bull 2X Shares (TSLL) plummeted 18% as Tesla stock dropped 9%, reflecting the leveraged ETF’s amplified exposure to the stock. Despite the poor results, Tesla remains in a broad trading range. CEO Elon Musk acknowledged challenges ahead, mentioning rough quarters potentially in the future.

In 2025, Tesla shares are down 25% while TSLL has plunged 62%. The sell-off has been driven by increasing competition, softening demand, and Musk’s public profile. Despite this, investor optimism remains around Tesla’s robotaxi initiative, with plans to expand ride-hailing operations across the U.S. and ramp up production of the humanoid robot, Optimus.

Musk aims to unveil third-generation prototypes of Optimus by year-end and scale production by 2026, with a goal of reaching a million units per year in less than five years. Tesla’s future ambitions in autonomous vehicles and robotics are helping offset challenges in the EV business, but profitability remains a key concern for investors.

Read more at Yahoo Finance: Tesla ETF Drops as EV Maker Faces 2Q Earnings Challenge