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Tesla reports 14% decline in vehicle deliveries, marking second straight year-over-year drop

Tesla reported around 384,000 vehicle deliveries in the second quarter, a 14% decline from a year ago, and the second straight quarterly drop. The stock rose about 2% Wednesday.

The electric vehicle maker reported 443,956 deliveries and production of 410,831 vehicles during the same period last year.

Here are the key numbers:

  • Total deliveries Q2 2025: 384,122 vehicles
  • Total production Q2 2025: 410,244 vehicles

Wall Street analysts were expecting Tesla to report deliveries of around 387,000 according to FactSet.

Deliveries in the first quarter of 2025 dropped 13% from a year earlier to 336,681. Deliveries are the closest approximation of vehicle sales reported by Tesla but are not precisely defined in the company’s shareholder communications.

The electric vehicle maker, headquartered in Austin, Texas, doesn’t break out sales and production by model or region. However, the company said that it produced 396,835 of its most popular Model 3 and Model Y cars, with 373,728 combined deliveries for these models in the second quarter.

Many investors had low expectations heading into the print.

An independent researcher who publishes as Troy Teslike on Patreon predicted deliveries of 356,000 for the quarter. Prediction market Kalshi told CNBC on Tuesday that its traders forecast deliveries of around 364,000.

Deepwater Asset Management’s Gene Munster said the report came 4% above the “whisper” number in a post to social media platform X. He expects the second-quarter decline to mark the bottom for Tesla.

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Tesla faces an onslaught of competition, especially from Chinese EV makers that sell newer and more affordable models. In the first quarter, Tesla partly blamed its declining automotive sales on customers who had delayed their orders so they could get a refreshed version of the Model Y SUV, which began shipping in March.

There’s also a political backlash against CEO Elon Musk, with waves of protests against Tesla weighing on the company’s reputation and impacting sales.

Musk was President Donald Trump’s biggest financial backer in last year’s election, and endorsed Germany’s far-right, anti-immigrant party AfD. He led the Trump administration’s Department of Government Efficiency (DOGE) initiative to slash the size and capacity of federal agencies, including regulators tasked with oversight of his companies. Musk’s formal role with DOGE ended in May.

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Tesla shares over the last month

His relationship with Trump quickly began to sour and, over the weekend, Musk reignited the feud, slamming the multitrillion-dollar tax-and-spending package backed by the president, and calling for the creation of a third political party.

Certain aspects of the bill could harm Tesla’s solar and battery business, and would likely lower EV sales by roughly 100,000 vehicles per year by 2035, according to think tank Energy Innovation.

Meanwhile, Trump has threatened to potentially end other subsidies that benefit Musk’s businesses, including Tesla and the aerospace and defense company SpaceX. He even threatened to deport Musk, a naturalized, U.S. citizen.

Also in Wednesday’s announcement, Tesla reported 10,394 deliveries of its other models during the second quarter, including its steel Cybertruck. The angular pickup has been recalled eight times for a variety of hardware and software issues since Tesla began shipping it in November 2023.

The company also reported that it had produced 410,244 vehicles during the three months ending in June, including 396,835 of its most popular, and lower-priced, Model Y SUVs and Model 3 sedans.

Shares of Tesla fell more than 5% on Tuesday to close at $300.71 and were down about 26% for the year, the worst performance among tech’s megacap companies. The move put the company’s market cap below $1 trillion.

The company will discuss financial results for the second quarter with investors on Wednesday, July 23, 2025 after markets close.

WATCH: Tesla’s autonomy business much bigger than any feud with the president

Tesla's autonomy business is much bigger than any feud with the President, says Deepwater's Munster

— CNBC’s Samantha Subin contributed reporting

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Datadog stock jumps 10% on tech company’s inclusion in S&P 500 index

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Datadog stock jumps 10% on tech company’s inclusion in S&P 500 index

The Datadog stand is being displayed on day one of the AWS Summit Seoul 2024 at the COEX Convention and Exhibition Center in Seoul, South Korea, on May 16, 2024.

Chris Jung | Nurphoto | Getty Images

Datadog shares were up 10% in extended trading on Wednesday after S&P Global said the monitoring software provider will replace Juniper Networks in the S&P 500 U.S. stock index.

S&P Global is making the change effective before the beginning of trading on July 9, according to a statement.

Computer server maker Hewlett Packard Enterprise, also a constituent of the index, said earlier on Wednesday that it had completed its acquisition of Juniper, which makes data center networking hardware. HPE disclosed in a filing that it paid $13.4 billion to Juniper shareholders.

Over the weekend, the two companies reached a settlement with the U.S. Justice Department, which had sued in opposition to the deal. As part of the settlement, HPE agreed to divest its global Instant On campus and branch business.

While tech already makes up an outsized portion of the S&P 500, the index has has been continuously lifting its exposure as the industry expands into more areas of society.

DoorDash was the latest tech company to join during the last rebalancing in March. Cloud software vendor Workday was added in December, and that was preceded earlier in 2024 with the additions of Palantir, Dell, CrowdStrike, GoDaddy and Super Micro Computer.

Stocks often rally when they’re added to a major index, as fund managers need to rebalance their portfolios to reflect the changes.

New York-based Datadog went public in 2019. The company generated $24.6 million in net income on $761.6 million in revenue in the first quarter of 2025, according to a statement. Competitors include Cisco, which bought Splunk last year, as well as Elastic and cloud infrastructure providers such as Amazon and Microsoft.

Datadog has underperformed the broader tech sector so far this year. The stock was down 5.5% as of Wednesday’s close, while the Nasdaq was up 5.6%. Still, with a market cap of $46.6 billion, Datadog’s valuation is significantly higher than the median for that index.

— CNBC’s Ari Levy contributed to this report.

CNBC: Datadog CEO Olivier Pomel on the cloud computing outlook

Datadog CEO Olivier Pomel on the cloud computing outlook

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Ether and related stocks gain amid the latest crypto craze: Tokenization

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Ether and related stocks gain amid the latest crypto craze: Tokenization

A representation of cryptocurrency Ethereum is placed on a PC motherboard in this illustration taken on June 16, 2023.

Dado Ruvic | Reuters

Stocks tied to the price of ether, better known as ETH, were higher on Wednesday, reflecting renewed enthusiasm for the crypto asset amid a surge of interest in stablecoins and tokenization.

BitMine Immersion Technologies, a bitcoin miner that announced plans this week to make ETH its primary treasury reserve asset, jumped about 20%. It’s gained more than 1,000% since the announcement. Betting platform SharpLink Gaming, which has also initiated an ETH treasury strategy, added more than 11%. Bit Digital, which last week exited bitcoin mining to focus on its ETH treasury and staking plans, jumped more than 6%.

“We’re finally at the point where real use cases are emerging, and stablecoins have been the first version of that at scale but they’re going to open the door to a much bigger story around tokenizing other assets and using digital assets in new ways,” Devin Ryan, head of financial technology research at Citizens.

On Tuesday, as bitcoin ETFs snapped a 15-day streak of inflows, ether ETFs saw $40 million in inflows led by BlackRock’s iShares Ethereum Trust. ETH ETFs came back to life in June after much concern that they were becoming zombie funds.

The price of the coin itself was last higher by 5%, according to Coin Metrics, though it’s still down 24% this year.

Ethereum has been struggling with an identity crisis fueled by uncertainty about the network’s value proposition, weaker revenue since its last big technical upgrade and increasing competition from Solana. Market volatility, driven by geopolitical uncertainty this year, has not helped.

The Ethereum network’s smart contracts capability makes it a prominent platform for the tokenization of traditional assets, which includes U.S. dollar-pegged stablecoins. Fundstrat’s Tom Lee this week called Ethereum “the backbone and architecture” of stablecoins. Both Tether (USDT) and Circle‘s USD Coin (USDC) are issued on the network.

Fundstrat's Tom Lee on being named chairman of BitMine Immersion Technologies

BlackRock’s tokenized money market fund (known as BUIDL, which stands for USD Institutional Digital Liquidity Fund) also launched on Ethereum last year before expanding to other blockchain networks.

Tokenization is the process of issuing digital representations on a blockchain network of publicly traded securities, real world assets or any other form of value. Holders of tokenized assets don’t have outright ownership of the assets themselves.

The latest wave of interest in ETH-related assets follows an announcement by Robinhood this week that it will enable trading of tokenized U.S. stocks and ETFs across Europe, after a groundswell of interest in stablecoins throughout June following Circle’s IPO and the Senate passage of its proposed stablecoin bill, the GENIUS Act.

Ether, which turns 10 years old at the end of July, is sitting about 75% off its all-time high.

Don’t miss these cryptocurrency insights from CNBC Pro:

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China’s Honor launches new challenge to Samsung with thin foldable smartphone and a big battery

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China's Honor launches new challenge to Samsung with thin foldable smartphone and a big battery

Honor launched the Honor Magic V5 on Wednesday July 2, as it looks to challenge Samsung in the foldable space.

Honor

Honor on Wednesday touted the slimness and battery capacity of its newly launched thin foldable phone, as it lays down a fresh challenge to market leader Samsung.

The Honor Magic V5 goes will initially go on sale in China, but the Chinese tech firm will likely bring the device to international markets later this year.

The company, which spun off from Chinese tech giant Huawei in 2020, is looking to stand out from rivals with key features of the Magic V5, like artificial intelligence, battery and size.

Honor said the Magic V5 is 8.8 mm to 9mm when folded, depending on the color choice. The phone’s predecessor, the Magic V3 — Honor skipped the Magic V4 name — was 9.2 mm when folded. Honor said the Magic V5 weighs 217 grams to 222 grams, again, depending on the color model. The previous version was 226 grams.

In China, Honor will launch a special 1 terabyte storage size version of the Magic V5, which it says will have a battery capacity of more than 6000 milliampere-hour — among the highest for foldable phones.

Honor has tried hard to tout these features, as competition in foldables ramps up, even as these types of devices have a very small share of the overall smartphone market.

Honor vs. Samsung

Foldables represented less than 2% of the overall smartphone market in 2024, according to International Data Corporation. Samsung was the biggest player with 34% market share followed by Huawei with just under 24%, IDC added. Honor took the fourth spot with a nearly 11% share.

Honor is looking to get a head start on Samsung, which has its own foldable launch next week on July 9.

Francisco Jeronimo, a vice president at the International Data Corporation, said the Magic V5 is a strong offering from Honor.

“This is the dream foldable smartphone that any user who is interested in this category will think of,” Jeronimo told CNBC, pointing to features such as the battery.

“This phone continues to push the bar forward, and it will challenge Samsung as they are about to launch their seventh generation of foldable phones,” he added.

The thinness of a foldable phone has become a battleground for smartphone makers to appeal to consumers who want the large screen size the device has to offer without extra weight.

At its event next week, Samsung is expected to release a foldable that is thinner than its predecessor and could come close to challenging Honor’s offering by way of size, analysts said. If that happens, then Honor will be facing more competition, especially against Samsung, which has a bigger global footprint.

“The biggest challenge for Honor is the brand equity and distribution reach vs Samsung, where the Korean vendor has the edge,” Neil Shah, co-founder of Counterpoint Research, told CNBC.

Honor’s push into international markets beyond China is still fairly young, with the company looking to build up its brand.

“Further, if Samsung catches up with a thinner form-factor in upcoming iterations, as it has been the real pioneer in foldables with its vertical integration expertise from displays to batteries, the differentiating factor might narrow for Honor,” Shah added.

Vertical integration refers to when a company owns several parts of a product’s supply chain. Samsung has a display and battery business which provides the components for its foldables.

Honor talks up AI

Smartphone players, including Honor, have also looked to stand out via the AI features available on their device.

In March, Honor pledged a $10 billion investment in AI over the next five years, with part of that going toward the development of next-generation agents that are seen as more advanced personal assistants.

Honor said its AI assistant Yoyo can interact with other AI models, such as those created by DeepSeek and Alibaba in China, to create presentation decks.

The company also flagged its AI agent can hail a taxi ride across multiple apps in China, automatically accepting the quickest ride to arrive? and cancelling the rest.

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