Tesla is facing a rough path ahead and will likely struggle unless Elon Musk fixes his public image, longtime investor Ross Gerber says.

Tesla shares are down in premarket trading Thursday as more disappointing sales data is dragging on the stock along with the lackluster second-quarter earnings report Tesla released after the closing bell on Wednesday.

The company reported the steepest decline in quarterly revenue in more than a decade, with a 12% fall, as it battles strong competition from cheaper electric vehicles and a backlash against CEO Elon Musk’s political views.

Tesla stock falls more than 6% pre-market after Q2 earnings call. Sales decline, EV incentives end, and new Model Y trim disappoints.

Tesla (TSLA) is no stranger to controversy, but the stakes may be higher than ever as the electric vehicle giant becomes entangled in a high-stakes legal showdown with the California Department of Motor Vehicles (DMV).

Tesla's chief financial officer, Vaibhav Taneja, said that President Donald Trump's tax bill could affect the availability of its cars.

Tesla reported weaker-than-expected second-quarter results, missing both top and bottom line estimates, as automotive revenue dropped 16% year-on-year to $16.7 billion.

On July 2, Tesla published its delivery numbers for the second quarter of 2025 (ended June 30), and they dropped yet again from a year ago. The company will report its financial results for the same period on July 23, which will show investors how its revenue and earnings were impacted by the sluggish EV business.

Earnings are expected to be around $0.44 per share, according to consensus estimates, reflecting a 15% drop compared to the previous year, while revenues are anticipated

Due to Tesla's innovation and diversification, 24/7 Wall St. sees strong upside potential for the stock by the end of the decade.