The Brief

Tesla's profit dropped 46% year over year, the company revealed in its earnings update Wednesday evening.

That was not exactly a surprise — in fact, it was better than most analysts had expected. Tesla had already reported sales for the quarter, which showed the continuation of a slump that stretched through much of the year. More revenue from other parts of the company, like a growing energy storage business, haven't made up for the fact that Tesla's not selling as many cars as it used to.

Tesla, once the undisputed global leader in electric vehicle sales, has lost that crown as its brand reputation has soured and competition — particularly from China — has grown more intense.

But the company continues to maintain that it's in the process of transitioning from being a car company to a "physical AI company," with value based on its self-driving vehicle technology, its robotaxi service and, eventually, humanoid robots.

As part of that pivot, Tesla is discontinuing its higher-end Model S and Model X vehicles. The vehicles were already made in much smaller numbers than the more affordable Models 3 and Y, but had symbolic value. The Model S, in particular, was a major step forward for Tesla and electric vehicles; Tesla called it the "world's first mass-produced, highway-capable EV," and it was the first vehicle built at Tesla's Fremont factory.

Instead of more traditional vehicles, the company is focusing its attention on its "Cybercab," a vehicle designed without a steering wheel or pedals that's meant to replace existing Teslas in the company's nascent robotaxi business.

"We would expect over time to make far more Cybercabs than all of our other vehicles combined," CEO Elon Musk said on a quarterly earnings call with investors and analysts Wednesday night. "The vast majority of miles traveled will be autonomous in the future … I'm just guessing, but probably less than 5% of miles driven will be where somebody is actually driving the car themselves."

And as for robots, Tesla is taking the Model S and Model X production lines in the Fremont plant and dedicating that space to production of the "Optimus" humanoid robot, which Musk said would launch production this year. (Musk has a history, which he often jokingly refers to, of overpromising on timelines.)

Musk warned Wall Street that as part of these plans, the company would be shelling out a lot of cash in the year ahead — an eye-popping $20 billion, more than double what the company spent on capital expenditures in 2025.

"We're making big investments for an epic future," Musk said.

Tesla lost its spot as world's top EV seller 

A Chinese company, not Tesla, is now the world's top EV maker.

In 2025, the Chinese automaker BYD sold more than 2.25 million battery-powered vehicles, according to the company.

Tesla sold 1.65 million, fewer than it sold in 2024. It's the second straight year of sales declines.

In late 2023, Musk had warned investors that Tesla was in between "growth waves," setting expectations low for 2024 but promising a return to rapid expansion with the launch of a "next-generation" vehicle that was tentatively planned for 2025.

That second growth wave hasn't materialized. Tesla repeatedly teased a much cheaper Tesla, rumored to sell for about $25,000 thanks to revolutionary changes in manufacturing. Even after Reuters reported that the vehicle was dead, Musk publicly maintained it was coming.

But it wasn't. Musk eventually confirmed that the company would focus its major redesign efforts on the Cybercab. Instead of offering a significantly cheaper vehicle, the company rolled out slightly cheaper versions of the Model 3 and Model Y.

Meanwhile, the electric vehicle market in the U.S. has taken a substantial hit. Sales were already underperforming expectations, and then President Trump took office and his administration began to systematically roll back EV incentives and regulations. Sales of EVs rose sharply in the summer of 2025 as consumers tried to take advantage of a disappearing consumer tax credit, and then dropped when the tax credit expired at the end of September. Automakers say it's still not clear what demand for EVs will look like without those tax credits.

Trump's policy changes have affected Tesla even more directly, by taking away a key revenue stream. Under previous government policies, automakers who didn't meet requirements for making their vehicles cleaner could buy "credits" from competitors who overperformed on building EVs, in lieu of paying fines. This was a lucrative source of cash for Tesla, and one that is now dwindling away. Tesla typically does not respond to requests for comment, and did not reply to an inquiry for this story.

Globally, meanwhile, EVs are still ascendant. In December, in the European Union, buyers registered more new pure EVs than traditional gasoline vehicles for the first time ever. Hybrids (like the original Prius) remain more popular than either, but that market isn't growing as fast as EVs. In Europe, EV sales increased by more than 50% year-over-year, while those popular hybrids rose only 6%. Traditional gasoline- and diesel-powered car sales dropped by around 20%.

In China, most new vehicles are already electric or plug-in hybrids. And Chinese exports of EVs are rising, taking off in places like Mexico and Brazil. Canada, too, just struck a deal to allow the import of some Chinese-made EVs without hefty tariffs.

In addition to BYD's conspicuous success, the major Chinese automaker Geely has boosted its battery-powered vehicle sales by 90% year over year, while competitor SAIC grew sales by 33%.

Those figures include the sales of plug-in hybrids, making them less of an apples-to-apples comparison to Tesla's pure electric sales — but compared to Tesla's sales decline, the trajectory is clear. Tesla once had the lead in the EV race, but the momentum is now with Chinese manufacturers.

Brand takes a beating

Meanwhile, Tesla has been grappling with an increasingly skeptical — or even hostile — consumer base in the U.S.

Musk's controversial political activities over the last few years have alienated many left-of-center Americans. While he won some fans on the right, so far, Republicans and conservatives remain less likely to buy EVs.

Evan Roth Smith is a pollster who has been tracking consumer sentiment about Tesla and EVs for the Electric Vehicle Intelligence Report. According to his most recent survey of more than 3,000 U.S. consumers, nearly all car brands have an overall positive reputation. Toyota ranks at the top: Nearly half of Americans have a positive view of the Japanese brand, and only 7% have a negative view. For Tesla, in contrast, 27% have a positive view and 37% a negative view — the company has more haters than fans.

Tesla's degree of unpopularity among the general public is very unusual for an automaker, he says: "Most carmakers don't have any sort of political valence or mass controversy attached to them." 

And brand perceptions affect sales.

Even current Tesla owners, who have long been remarkably loyal to the brand, are showing a little more interest in shopping around. LexisNexis Risk Solutions tracks what brands current car owners purchase for their next vehicle; if they stick with the same brand, that's evidence of brand loyalty. In their data, Tesla — which has ranked first or second for industry loyalty in recent years — has slipped to third place in 2025.

The company still enjoys higher loyalty than the industry average. But it's clear that EV buyers have more options now, and even Tesla enthusiasts are more willing to consider them. In 2020, LexisNexis found that among existing Tesla owners who purchased another EV, a remarkable 98% got another Tesla. In 2025, that number dropped to 78%.

Musk's focus is on AI and robots, not cars 

Musk — who was recently granted an extraordinary pay package worth up to a trillion dollars, contingent on meeting lofty goals for Tesla's growth and valuation — has maintained for years that Tesla's future lies in autonomous vehicles, artificial intelligence and humanoid robots.

But he has frequently missed his own timelines for those achievements; the driver-assistance software in Tesla vehicles still requires human oversight, and the robotaxi service is only available in small pilot programs in Texas and California, despite Musk projecting service to 50% of America by the end of 2025.

Roth Smith's polling has found that this continued focus on autonomy and robotaxis is not helping Tesla win over public opinion. The "Full Self-Driving (Supervised)" software that allows Tesla vehicles to steer themselves — with human oversight — is central to Musk's vision for the company. Roth Smith's survey found that only 14% of respondents said FSD made them more likely to buy a Tesla; 34% said it made them less likely.

And out of more than 20 different auto brands that Roth Smith polled consumers about, the only ones besides Tesla to have a net negative view from the public were Cruise, Waymo and Zoox — all autonomous vehicle companies.

"There's a lot of skepticism from consumers over whether this technology is safe for mass deployment yet, whether regulators are up to the task of creating rules of the road for autonomous vehicles," Roth Smith says.

By focusing so much on autonomy, Roth Smith argues, Musk has associated Teslas with these controversial robotaxis. "They now are perceived like a much more controversial, much more polarizing type of technology," he says.
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Local ice cream chain Wanderlust Creamery offers a sweet relief from this week’s sweltering temperatures. From ube to mango sticky rice, its unique signature and seasonal flavors can be found across Los Angeles and Orange counties.

Founder and chef Adrienne Borlongan sat down with Austin Cross, who hosts AirTalk every Friday, to discuss Wanderlust’s travel-inspired flavors.

About the owner

Borlongan initially thought that she would be a nurse. But after spending two years completing nursing prerequisites, she pivoted to a degree in food science and worked as a bartender for almost a decade.

Adrienne Borlongan, founder and chef of Wanderlust Creamery, is also a food scientist.

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Lindy Lin

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One day, her roommate brought home an ice cream maker.

“And that kind of just snowballed into this crazy ice cream obsession,” Borlongan recalled.

She founded Wanderlust with her partner Jon-Patrick Lopez in 2015.

What sets the store apart?

Wanderlust’s flavors come from places Borlongan has either traveled to or has on her travel bucket list.

Many of the flavors are inspired by Borlongan’s Filipino-American heritage, including a best-selling ube malted crunch. It also features flavors like Ashta, a clotted cream from the Middle East.

The ultimate Wanderlust experience, according to the chef

Wanderlust Creamery is known for flavors from all over the world.

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Courtesy Wanderlust Creamery

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You're encouraged to try as many samples as your heart desires. Wanderlust’s staff are trained to guide anyone through the flavors and talk you through options before you make a decision.

What’s next for Wanderlust? 

Borlongan is working on innovating new flavors for the summer, including an ice cream based on Swedish candies. She’s trying to whip up a mixture that’s able to keep the gummies chewy while frozen in ice cream.

Wanderlust is also opening a new location in San Diego.

Shop details

• Wanderlust’s ice cream has less air compared to traditional ice cream, making it rich and creamy. 
• Its seasonal menu items include Buontalenti, honey butter corn, Kaya toast, white peach verbena, Icelandic milk chocolate and Ashta. 
• The local ice cream shop has locations in Atwater Village, Fairfax, Pasadena, Sawtelle, Venice, Irvine, Costa Mesa and Torrance. 

Menu items we tried

• Ube malted crunch (malted milk, malted milkballs, and ube) 
• Stick rice and mango (rice milk, coconut cream, salt, Alphonso mangoes)
• White peach verbena (peach, lemon verbena)

What should we try next?

An Orange County Superior Court judge this week found that Orange County Board of Education member Marilyn “Mari” Barke failed to report millions of dollars in assets and income in her annual economic disclosure filings over multiple years.

Barke will have to pay nearly $82,000 in penalties, as well as attorneys’ fees, according to a proposed decision statement. The fees could amount to hundreds of thousands of dollars.

What’s next? 

State court rules allow parties 15 days to file objections to the proposed decision. After that, the court will be able to enter a final judgment.

About the case

Barke was elected to the OC Board of Education in 2018, and she currently serves as a board trustee. She is also the director of coalitions at the California Policy Center, an educational non-profit.

Under the California Political Reform Act, local elected officials are required to disclose their income, investments and other assets.

Barke filed amended financial statements for 2018 through 2021, following a complaint by private citizen made in February 2023. The Fair Political Practices Commission in 2024 found Barke liable on 16 counts for failing to report that income. Barke agreed to a settlement and paid a $3,200 penalty.

The judge later found that the FPPC’s settlement did not fully address the “willfulness/recklessness” or “adequacy of corrective efforts,” according to the proposed decision statement from Orange County Superior Court Judge H. Shaina Colover.

According to the court records, Barke argued that the mistakes in her filings were because she was following the advice of her now ex-husband, Dr. Jeff Barke, who she says advised her that the filings only needed to list economic interests if they conflicted with her role on the board.

Colover's response was that Barke’s reliance on that alleged advice was objectively unreasonable and wrong.

The response

Lynne Riddle, a retired judge who filed the complaint, said in a statement that financial interest disclosures are critical to the public.

“When elected officials flout their disclosure obligations like this, it undermines the public's right to honest and ethical government,” stated Riddle, who has published op-eds about charter schools and the OC Board of Education. “The Court’s decision vindicates the public’s right to know what their elected officials are doing.”

Riddle said the ruling and penalties should send a clear message that elected officials cannot shirk their responsibilities to disclose their economic interests.

Barke’s lawyer, Mark Rosen, in a statement to LAist, said: "From the start, this case was a vendetta against Mrs. Barke because she supports charter schools."

“As a first-time candidate, she made some technical mistakes in her forms with the Fair Political Practices Commission, and she freely admitted and corrected those mistakes and paid a fine,” Rosen said. “The anti-charter schools gang then piled on with this frivolous lawsuit.”

There are mistakes in the court’s decision, and “we are exploring a further course of action,” Rosen added.

Thinking about buying or leasing an electric car in the near future? California will soon be making that cheaper.

On Monday, Gov. Gavin Newsom signed legislation that sets aside millions of dollars in state funds to fund rebates for residents who buy or lease a zero-emission vehicle — a category that includes battery-electric cars and hydrogen fuel cell-powered vehicles.

First-time EV buyers can qualify for a $3,500 discount when buying or leasing a new electric vehicle, as long as the retail price is under $50,000. If you’re looking for a used electric car, there’s still a price reduction available — a smaller one, however: $1,750 off for vehicles retailing for under $25,000.

The state’s program — called “MyFirstEV” — comes a year after President Donald Trump’s massive spending and tax plan known as the One Big Beautiful Bill ended federal tax credits for EVs nationwide. Previously, American consumers could claim a $7,500 tax credit after buying a new EV or $4,000 for used EVs.

Newsom said on Monday that as the federal government pulls back from supporting EVs, California would instead be “putting its foot on the accelerator” — and that the instant rebate program would “[make] it easier for families to drive clean, breathe clean, and keep more money in their pockets.”

The program has secured $270 million in funding — half of that from the state budget and the other from participating EV automakers.

One big thing to know: Despite the fanfare, the MyFirstEV program has not yet started — and we don’t have an official start date either. State officials will reveal next month which car brands are actually included, so don’t expect to receive this discount if you purchase an EV today.

Who qualifies for this program?

Only California residents who are buying or leasing an EV for the first time are eligible for this rebate.

And consumers will have to confirm that this is the first time they are buying or leasing an EV before taking their car home, said Lindsay Buckley, communications director of the California Air Resources Board, the agency tasked with managing the program.

“Participants will be required to sign a legal document declaring that this is in fact their first purchase or lease of an electric vehicle,” she said.

“So if you’ve already bought or leased an electric vehicle in the past, then you wouldn’t be eligible for this program.”

Limiting the program to first-time buyers could actually help boost the popularity of EVs among people who have never bought them, said Scott Moura, a UC Berkeley professor of civil engineering.

“Providing incentive to people who have bought EVs before isn’t really adding to the number of people who purchase EVs,” he said. “The funds can be used most effectively if they’re targeted towards first-time EV buyers.”

Do I need to apply ahead of time?

No — there’s no application to fill out ahead of time. Once state officials announce that the MyFirstEV program has officially begun, all you need to do is go to a dealership of a participating automaker.

This is different from other past state rebate programs — like the now-terminated Electric Bicycle Incentive Program — which have required participants to fill out an application before making a purchase.

If you move forward with making a purchase or lease, confirm two things with the salesperson and the financing team:

• That you qualify for the MyFirstEV discount
• That there are still state funds available for this specific car brand.

When federal EV rebates were available, buyers had to initially wait until they filed their taxes the year after buying their car to request this money back. But state officials say that folks interested in the FirstEV discount won’t have to wait so long.

“Once launched, Californians will be able to go down to participating automakers’ dealerships and access the rebates at the point of sale,” Buckley said. “They won’t have any delay in getting this discount.”

Can the program help me pay for any EV I want?

No — MyFirstEV discounts will only cover battery-electric cars and hydrogen fuel cell-powered vehicles from automakers participating in the program. State officials will confirm next month which car companies are included.

But this means that if an EV brand you really want to purchase is not on the list, you won’t get the discount when buying or leasing the car.

Hybrid vehicles are also not included in MyFirstEV, state officials confirmed with KQED.

There’s also a price limit: The EV you choose must cost under $50,000 if it’s a new car, and $25,000 if it’s used. There is, however, a small exception to this price rule if the automaker is headquartered in California — in which case the discounts will apply regardless of the manufacturer’s retail price. More than a dozen electric car brands are based in the Golden State, with several selling models priced beyond the $50,000 limit.

I’m really interested in this program. What should I do while I wait for it to open?

While consumers wait for the program to begin, Buckley said they learn as much as they can about different EVs available on the market.

“Maybe head to a dealership and take a test drive of an electric vehicle that you’re eyeing,” she said. “We do expect this to be a popular program and for [funds] to get gobbled up pretty quickly” — so the more prepared you are when the program officially begins, the better.

A Polestar electric car prepares to park at an EV charging station on July 28, 2023, in Corte Madera. (Justin Sullivan/Getty Images)
Potential buyers can also learn about what it takes to care for an EV, like how to find charging stations and battery maintenance.

Buckley said the site ElectricForAll — created by the nonprofit Veloz — is a good source of information.

Will some carmakers have more rebates available than others?

No — funds will be divided equally among the participating automakers.

However, there may be greater demand for some brands, which could mean that rebates may run out faster at some dealerships.

This article includes reporting from KQED’s Laura Klivans.

The Centers for Disease Control and Prevention and the Food and Drug Administration advise consumers to avoid eating shredded iceberg lettuce at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio and West Virginia.

Health officials analyzed 190 cases of cyclospora in Michigan where a person who fell ill reported eating at Taco Bell. Officials found that 90% of those people said they ate iceberg lettuce.

More than 1,644 sick people in this multi-state cyclospora outbreak reported eating at Taco Bell in those states starting May 13, according to the agencies. There have been 94 hospitalizations and no deaths reported.

The FDA traced this subset of cases identified nationwide to a single supplier of contaminated iceberg lettuce from Mexico, but did not name the supplier.

FDA says it's working with the supplier to identify other locations where the contaminated lettuce has been distributed. The agency notes this is one large cluster that is epidemiologically related. There are other clusters across the country that may or may not be associated. Cases have been identified in 34 states.

Taco Bell issued a statement July 16 that it took "immediate action to voluntarily remove potentially impacted lettuce from a supplier in select states." The statement also said the lettuce would be removed from the supply chain nationwide and replaced within 24 hours.

A wide reach for salad suppliers

The Associated Press, citing an unnamed federal official, has reported that Taylor Farms was the supplier of the lettuce. NPR has not independently confirmed that, and Taylor Farms has not responded to a request for comment.

A handful of big players with integrated supply chains and advanced processing infrastructure, including Taylor Farms, dominate the bagged lettuce and salad industry in the U.S.

With such a big reach, a single supplier can provide lettuce products to a number of retailers, so it's possible that additional clusters of cyclospora around the country could be linked to lettuce from the same supplier. It's also possible that there are multiple sources and suppliers linked to other cases around the country.

The FDA and CDC say the investigation is continuing.

How to protect yourself

The symptoms of the illness include watery diarrhea, loss of appetite and fatigue, and people contract it by eating or drinking contaminated food or water.

To protect yourself from the parasite, the CDC advises people to follow standard food safety handling protocols. "Wash your hands and any fresh produce thoroughly under running water before eating, cutting or cooking. This will reduce the risk of infection. Cooking kills the parasite, so heating food to 158 F or 70 C or higher is effective," said Dr. Gwen Biggerstaff with the CDC's Division of Foodborne, Waterborne, and Environmental Diseases.

If people do develop symptoms, health officials advise people to contact their healthcare providers to be tested specifically for cyclospora. Routine stool tests often don't include that test.

"People with symptoms should stay well-hydrated and avoid preparing food for others while acutely ill, out of general caution, even though person-to-person spread is very unlikely," Biggerstaff said.

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