The fallout from Elon Musk’s plunge into politics a year ago is still hammering his Tesla business as both sales and profits fell sharply again in the latest quarter.

Tesla on Wednesday reported a drop in its profit during the second quarter, as the electric vehicle maker continues to struggle despite CEO Elon Musk's pivot back to focusing on his companies after his controversial role leading the Trump administration's government cost cutting efforts.

Tesla Chief Executive Elon Musk said on Wednesday that U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year.

Tesla’s sales plunge over the last 18 months has been a stunning turn for a company that recorded only one quarterly year-over-year sales drop before 2024. And the company faces significant trouble ahead.

Tesla’s sales plunge over the last 18 months has been a stunning turn for a company that recorded only one quarterly year-over-year sales drop before 2024. And the company faces significant trouble ahead.

Follow live news and analysis of the EV maker's quarterly results, which are due Wednesday after the market closes. Tesla may include updates about robotaxis and a lower-priced car.

Tesla says it has started initial production of a more affordable model and expects volume production in the second half of the year.

Tesla had said in April it would start producing the model by the end of the first half and sources had told Reuters the ve