July 24, 2025

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Tesla Q2 Profit Sinks 16% as Musk Warns of Rough Patch

Tesla reported a steep decline in second-quarter profitability, with net income falling 16% year-over-year to $1.2 billion and revenue down 12% to $22.5 billion. CEO Elon Musk said the elimination of the $7,500 U.S. EV tax credit and intensifying global competition could drive “a few rough quarters” before new autonomous and affordable models lift margins.

Key points:

Profit fell from $1.4 billion in Q2 2024; deliveries and average selling prices slipped.

Musk pledges long-term upside via robotaxis, AI and a lower-cost model in 2H 2025.

European sales plunged 33% H1 2025 amid credit cuts and brand backlash.

US Guts Auto Emissions Rules, Upends Industry Plans

The latest U.S. budget bill strips enforcement of Corporate Average Fuel Economy (CAFE) standards, eliminating penalties for automakers that miss efficiency targets and voiding the EPA’s credit-trading system. The move removes a key incentive for zero-emission leaders like Tesla, which hauled in roughly $500 million in credits this quarter.

Industry insiders warn that development pipelines remain largely unchanged in the near term, given multi-year lead times for new powertrains. Yet some brands may extend existing V6/V8 engines—evidenced by Ram’s Hemi comeback and Mercedes-Benz’s shift back to larger blocks—while others reconsider EV and hybrid launches amid political uncertainty and global efficiency pressures.

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BYD to Assemble EVs in Pakistan by 2026

Chinese EV leader BYD aims to begin local assembly in Pakistan by July–August 2026, leveraging government incentives and rising demand for electric and plug-in hybrid vehicles. The Karachi plant, built in partnership with Mega Motor Company (HUBCO), will start with a 25,000-unit annual capacity on a double shift, using imported components and locally sourced non-electric parts.

BYD has already delivered a few hundred imported EVs since March, surpassing internal sales targets by 30%. The company projects Pakistan’s EV/PHEV market to grow three- to fourfold in 2025 and is targeting a 30–35% market share, with future exports to right-hand drive neighbours under evaluation.

Mercedes Halts U.S. EQE and EQS Production

Mercedes-Benz will suspend U.S. production of its flagship EQE and EQS electric sedans and SUVs after filling current orders, effective September 1, 2025. The automaker has closed U.S. order banks for the EQE sedan, EQE SUV, EQS sedan and EQS SUV, with no timeline yet for their return.

Faced with looming 25% import tariffs, the loss of federal EV tax credits and steep year-over-year sales declines (52% for the EQS and 39% for the EQE in 2024), Mercedes is reshaping its U.S. electric lineup. New plug-in hybrid and all-electric models like the CLA sedan and GLC SUV will still launch later in 2025.

UT Austin’s Hydrogen Cars Complete 365-Mile Texas Trek

AUSTIN, June 2025 — A team from the University of Texas at Austin’s Center for Electromechanics made history this month by driving three Toyota Mirai hydrogen fuel-cell vehicles from Austin to Houston and back on one fill. With only a single commercial hydrogen station in Texas—at UT’s J.J. Pickle Research Campus—the students logged a 365-mile round trip and still returned with a quarter tank of fuel.

Their mission, part of the Hydrogen Technology Expo, showcased both the promise and the infrastructure gap of hydrogen mobility. Grace Childers, a chemical engineering student who piloted one of the cars, said the biggest challenges were Houston traffic and ensuring that one “shot” at refueling sufficed for the entire journey.

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US Budget Bill Strips Auto Emissions Rules, Threatens EV Incentives