Tesla (TSLA) Q2 2025 earnings results and conference call transcript

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For the Q2 of 2025, Tesla has released its earnings report, causing a shift in the stock market after-hours. As a manufacturer of electric vehicles, they reported earnings per share of $0.27 and revenues amounting to $19.335 billion. However, these figures fell short of analysts’ predictions for earnings per share ($0.39) and anticipated revenue ($21.11 billion).

Listen to the Tesla (TSLA) Q2 2025 earnings call

https://player.twitch.tv/

Tesla (TSLA) Q2 2025 Earnings Release

Check out the full TSLA Q2 2025 earnings report on the Tesla Investor Relations website.

Highlights

Profitability

  • $0.9B GAAP operating income
  • $1.2B GAAP net income
  • $1.4B non-GAAP net income

Cash

  • Operating cash flow of $2.5B
  • Free cash flow of $0.1B
  • $0.2B decrease in our cash and investments to $36.8B

Operations

  • Launched our Robotaxi service in Austin
  • Delivered first customer vehicle fully autonomously
  • Deployed first Megapacks from Megafactory Shanghai

Summary

2025’s Q2 marked a significant milestone for Tesla as it signified our shift from dominating the electric vehicle and renewable energy sectors to also excelling in AI, robotics, and related services. We took the first step with the debut of our Robotaxi service in Austin, Texas in June. Although the service is initially small-scale, we are confident that our autonomous driving approach – utilizing a camera-based system supported by neural networks trained on data from our vast global fleet of vehicles – enables us to consistently enhance safety, expand the network rapidly, and boost profitability over time.

Moving forward, we’re broadening our range of vehicles, starting with the initial construction of a more budget-friendly model in June, aiming for mass production in the latter part of 2025. Furthermore, work on Semi and Cybercab is progressing, both expected to enter mass production by 2026.

The energy sector has never been more vital. Adequate, clean energy is essential for economic progress and indispensable for creating and marketing AI-driven goods and services. With electricity consumption on the rise, our Megapack product enhances the utilization of existing power generation and distribution infrastructure, leading to a more resourceful use of the electric grid. When combined with solar PV, Megapack is financially competitive with conventional fossil fuel generators and can be set up four times faster than traditional fossil fuel plants with similar capacity. Over the past year, energy storage deployments have set new records for 12 consecutive quarters.

In the face of ongoing economic uncertainty due to fluctuating tariffs, ambiguous effects from fiscal policy adjustments, and shifting political climates, we persist in investing heavily in Capital Expenditure (CapEx) and Research & Development (R&D). We are committed to maintaining a robust financial position. Our objectives remain steadfast: producing affordable and appealing autonomous-ready models that optimize our worldwide vehicle fleet, as our self-driving software technology advances rapidly, expanding our Energy sector, and enhancing our robotics initiatives.

Total income dropped by 12% year over year to reach approximately $22.5 billion. Year-over-year (YoY), this decrease was influenced by the following factors:

  • decline in vehicle deliveries (-)
  • lower regulatory credit revenue (-)
  • reduced vehicle average selling price (ASP) (excl. FX impact), due to mix (-)
  • decline in Energy Generation and Storage revenue due to lower ASP (-)
  • growth in Services and Other (+)

In the past year, our annual earnings dropped by 42%, down to $0.9 billion. This resulted in a 4.1% operating profit margin. The decrease in operating income was mainly influenced by several factors:

  • lower regulatory credit revenue (-)
  • increase in operating expenses (ex. restructuring and SBC) driven by AI and other R&D projects (-)
  • decline in vehicle deliveries (-)
  • increase in SBC (-)
  • decrease in restructuring charges (+)
  • lower cost per vehicle, due to mix and lower raw materials partially offset by lower fixed cost absorption and an increase in tariffs (+)
  • growth in Energy Generation and Storage gross profit (+)

As a devoted follower, I’m excited to share that our quarter-end liquidity, which includes cash, cash equivalents, and investments, stood firm at approximately $36.8 billion. The slight dip of $0.2 billion was primarily due to adjustments in restricted cash and cash used in financing activities. However, this decrease was partially offset by our robust free cash flow. In simpler terms, despite some minor shifts, our overall financial strength remains solid!

Outlook

Volume

  • It is difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains, our cost structure and demand for durable goods and related services. While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the actual results will depend on a variety of factors, including the broader macroeconomic environment, the rate of acceleration of our autonomy efforts and production ramp at our factories.

Cash

  • We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses. Furthermore, we will manage the business such that we maintain a strong balance sheet during this uncertain period.

Profit

  • While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardwarerelated profits to be accompanied by an acceleration of AI, software and fleet-based profits.

Product

  • Our focus remains on prudently growing our vehicle volumes in a capex efficient manner by using our existing vehicle production capacity before building new lines. Plans for new vehicles that will launch in 2025 remain on track, including initial production of a more affordable model in 1H25.
  • Our purpose-built Robotaxi product – Cybercab – will continue to pursue a revolutionary “unboxed” manufacturing strategy and is scheduled for volume production starting in 2026.

Tesla (TSLA) Q2 2025 Earnings News Highlights

Check out all of our Tesla news coverage:

    Tesla (TSLA) Q2 2025 conference call transcript

    The conference call discussing Tesla’s earnings results will begin at 5:30 PM Eastern Time. Stay tuned to this article as we provide a live transcript of the call directly.

    Remember, this article is intended for educational purposes alone. It isn’t meant to guide your investments. Instead, always consider your personal investment timeline, risk preferences, and seek advice from a financial expert before using this information.

    Full Disclosure:

    In the context of this report, Asif A. Khan (our main investor), his kin, and/or his firm Virtue LLC held the below roles:

    [The information in brackets is optional]

    [For example, “Asif A. Khan was the CEO”, “His family members were listed as directors”, or “Virtue LLC owned a substantial percentage of shares”]

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    2025-07-24 00:31