How Tesla lost some of its biggest fans Tesla has put off the production of a more affordable "model 2" EV, while other automakers are now offering a greater variety of vehicles, and China-based competitors are selling affordable EVs with high-tech self-driving features as a standard rather than premium option. Tesla shares are down about 17% for the year, the worst performance among tech's megacaps. The Nasdaq is up more than 8% in 2025. Musk has tried to keep fans and investors focused on Tesla's future, which he envisions as being dominated by the company's robotaxis, and humanoid Optimus robots. Musk sees Tesla's robotaxis as working for their owners, making them money while they sleep. Optimus robots, he says, will be so sophisticated they can serve as factory workers or babysitters. Tesla opened a diner and charging station in Los Angeles this week, where fans can see the Optimus robots at work on a simple task, slowly scooping popcorn. The company faces massive competition in robotics from developers including 1X Technologies, Agility Robotics, Apptronik, Boston Dynamics and Figure AI. In June, Tesla began testing a robotaxi service in Austin, Texas, which operates in a limited area with a human valet on board. The service is accessible only to select riders, generally Tesla and Musk enthusiasts. The robotaxi rollout is seen by bulls as a positive sign for the company, but Bank of America analysts cautioned in a recent report that it would have "immaterial financial ramifications" in the near term. The National Highway Traffic Safety Administration, meanwhile, has pressed Tesla for information about reported incidents where the vehicles appeared to violate traffic laws. In one incident, a Tesla robotaxi scraped a parked vehicle at a pizzeria parking lot in Austin, and in another, a robotaxi veered out of its lane briefly into oncoming traffic. In a note earlier this month, Barclays analysts said Tesla has shown "weak fundamentals" heading into its earnings report. Still, shareholders have remained excited about Tesla's "robotaxi narrative," wrote the analysts, who have the equivalent of a hold rating on the stock. Wednesday's report will be the first for Tesla since Musk officially left his role in the Trump administration and immediately preceded to publicly slam the president, mostly for the Republicans' spending package that he endorsed. Musk has since promised to start a new political party in the U.S. which he calls The America Party. One retail investor submitted an anonymous question via the Say platform, which Tesla uses ahead of earnings calls, to ask, "With Elon Musk now more publicly involved in U.S. politics through the new America Party, is Tesla taking any steps to manage potential risks, whether from shifting political alliances, regulatory perception, or public opinion?" Most questions submitted to the platform sought updates from Tesla about its robotaxi test in Austin, self-driving ambitions and its plans for a more affordable EV model. Tesla's automotive gross margins are also likely to be in focus, along with commentary on how the company will weather Trump's tariffs and the end of federal tax credits for EV buyers. Company executives will host an earnings call with analysts at 5:30 p.m. ET.