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.

The CEO is already eyeing expansion for his Tesla Diner dishing merchandise and food served by Optimus robots.

Tesla started making the "first builds" of its affordable model in June, the electric vehicle maker said on Wednesday, adding that it expects volume production in the second half of this year.

The Tesla diner and drive-in had a surprise opening on Monday, serving a mix of milkshakes and charging stations

Tesla's earnings are due today with an investor call at 5:30 p.m. ET. Elon Musk's politics have rocked TSLA stock, with shares down 18% YTD.

Analysts estimate that the company earned $1.2 billion from April to June, according to Bloomberg, down from $1.4 billion a year ago. Sales are expected to have fallen to $22.6 billion from $25.5 billion in the second quarter of 2024. Tesla has not reported an increase in quarterly profit since the third quarter of 2024.

Sales for the company are down all over the world, despite its recent introduction to new markets, like India. Now, as Tesla struggles to keep its head above water, another significant revenue stream is about to run dry,