New Delhi, July 24 -- The fallout from Elon Musk's plunge into politics a year ago is still hammering his Tesla business as both sales and profits dropped sharply again in the latest quarter.

The car company that has faced boycotts for months said Wednesday that revenue dropped 12% and profits slumped 16% in the three months through June as buyers continued to stay away.

"The perception of Elon Musk, its chief executive, has rubbed the sheen right out of what once was a darling and soaring automotive brand," wrote Forrester analyst Dipanjan Chatterjee in an email. Tesla is "a toxic brand that is inseparable from its leader."

Quarterly profits at the electric vehicle, battery and robotics company fell to $1.17 billion, or 33 cents a sha...