Elon Musk Says Tesla Could Face 'A Few Rough Quarters' As EV Incentives Expire And Trump Tariff Pressures Mount

Tesla Inc. (NASDAQ:TSLA) CEO, Elon Musk, warned that the company was entering a challenging period as federal EV credits wind down and tariff-related headwinds begin to mount.

What Happened: During the company’s second quarter earnings call on Wednesday, Musk said, “We probably could have a few rough quarters. I’m not saying that we will, but we could. Q4, Q1, maybe Q2,” referring to the fourth quarter of 2025, along with the first and second quarters of 2026.

The company acknowledged the overlapping headwinds it is now facing during the call, starting with the expiration of the $7,500 federal EV tax credit for many of its models, towards the end of the current quarter.

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In addition to regulatory changes, Tesla disclosed that the tariffs imposed by President Donald Trump have increased costs ...