Tesla (TSLA) Q1 2025 earnings results and conference call transcript

by

For the first quarter of 2025, Tesla has released its financial results, and the stock is experiencing post-market trading fluctuations. As an electric vehicle manufacturer, they reported earnings per share of $0.27 and a revenue of $19.335 billion, which fell short of analysts’ predicted earnings per share of $0.39 and projected revenue of $21.11 billion.

Listen to the Tesla (TSLA) Q1 2025 earnings call

https://player.twitch.tv/

Tesla (TSLA) Q1 2025 Earnings Release

Check out the full TSLA Q1 2025 earnings report on the Tesla Investor Relations website.

Highlights

Profitability

  • $0.4 billion GAAP operating income
  • $0.4 billion net income
  • $0.9 billion non-GAAP net income

Cash

  • Operating cash flow of $2.2 billion
  • Free cash flow of $0.7 billion
  • $0.4 billion increase in our cash an investments to $37.0 billion

Operations

  • New Model Y ramp outpacing all past ramps
  • Megafactory Shanghai produced > 100 Megapacks
  • Model 3, Model Y, and Cybertruck now drive autonomously from production line to outbound lots in Fremont and Gigafactory Texas.

Summary

In Q1, we achieved an unprecedented feat: simultaneously transitioning production processes across all our factories for the globally top-selling vehicle, the Model Y. The Tesla team skillfully adjusted our manufacturing lines in four factories, coordinating global supply chains spanning three continents without significant interruptions, showcasing our operational and supply chain management prowess.

AI plays a significant role in Tesla’s growth and the broader economy, serving as a cornerstone for our pursuit of sustainable prosperity. The advancements in AI infrastructure are spurring rapid demand growth, which, combined with traditional utility customer applications, presents a substantial opportunity for our Energy storage solutions to ensure grid stability, distribute energy efficiently, and offer extra power capacity when required.

Although the current tariff situation may have a more pronounced effect on our Energy division compared to automotive, we are implementing strategies to strengthen the business over the medium to long term, with a focus on preserving its vitality.

The uncertainty in both the automotive and energy sectors is growing rapidly due to the swift changes in international trade policies. These alterations are negatively affecting global supply chains and cost structures of companies like Tesla and our competitors. Furthermore, shifting political views could significantly influence demand for our goods in the immediate future. Despite these challenges, we’re determined to broaden our business by providing autonomous robots in various shapes and applications – leveraging our real-world AI capabilities – to both customers and factories. As we face these winds of change, this expansion strategy will help us navigate through the difficulties.

Despite temporary challenges with immediate profitability, our strategically established, cost-effective and locally-centered production network offers us the edge of offering superior goods at competitive prices worldwide. Simultaneously, we are persisting in strategic, high-impact investments while preserving a robust financial standing during this unpredictable phase.

Year-over-year (YoY) earnings dropped by 9%, totaling approximately $19.3 billion. The decrease in revenue for this period can be attributed to the following factors:

The total revenue fell by 9% compared to last year, amounting to around $19.3 billion. This decline was influenced by various aspects as follows:

  • decline in vehicle deliveries, in part due to the Model Y update across all four vehicle factories (-)
  • reduced vehicle average selling price (ASP) (excl. FX impact), due to mix and sales incentives (-)
  • negative FX impact of $0.3B (-)
  • growth in Energy Generation and Storage and Services and Other (+)
  • higher regulatory credit revenue (+)

Profitability refers to our annual decrease of 66% in earnings from operations, bringing the total down to $0.4 billion. This resulted in an operating margin of 2.1%. Year-over-year (YoY), our operating income was mainly affected by several key factors:

  • reduced vehicle ASP (-)
  • decline in vehicle deliveries (-)
  • increase in operating expenses driven by AI and other R&D projects partially offset by a decrease in SG&A (-)
  • growth in Energy Generation and Storage gross profit (+)
  • lower cost associated with Cybertruck production ramp in Q1’24 (+)
  • lower cost per vehicle, including lower raw material costs partially offset by lower fixed cost absorption primarily from Model Y production decrease YoY (+)
  • higher regulatory credit revenue (+)

At the end of the quarter, our total cash, cash equivalents, and investments amounted to approximately $37 billion. This represents a sequential growth of $0.4 billion, which mainly stemmed from a positive free cash flow of around $0.7 billion.

Outlook

Volume

Cash

Profit

Product

Tesla (TSLA) Q1 2025 Earnings News Highlights

Check out all of our Tesla news coverage:

Tesla (TSLA) Q1 2025 conference call transcript

The conference call discussing Tesla’s earnings results will commence at 5:30 PM Eastern Time. Watch this space as we provide a live transcript of the call immediately.

Developing…

Read More

2025-04-22 23:27