Tesla (TSLA) TSLA Q3 Financial Results Summary
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Tesla, Inc. (TSLA) Q3 2025 Financial Results Summary
Tesla, Inc. (TSLA) released its third quarter 2025 financial results on October 22, 2025. Below is a summary of the highlights and metrics from the report.
Financial Performance
- Total revenue: Increased 12% year-over-year (YoY) to $28.1 billion.
- Total automotive revenue: Rose 6% YoY to $21.2 billion.
- Energy generation and storage revenue: Grew significantly by 44% YoY to $3.4 billion.
- Services and other revenue: Increased by 25% YoY to $3.5 billion.
- Total gross profit: Marginally increased to $5.1 billion, reflecting a slight YoY increase of 1%.
- Total GAAP gross margin: Declined by 185 basis points (bp) YoY to 18.0%.
- Operating expenses: Increased by 50% YoY to $3.4 billion.
- Operating income: Decreased by 40% YoY to $1.6 billion, resulting in an operating margin of 5.8% (down 501 bp).
- Net income attributable to common stockholders (GAAP): Declined by 37% YoY to $1.4 billion.
- Net income attributable to common stockholders (non-GAAP): Decreased by 29% YoY to $1.8 billion.
- Diluted EPS (GAAP): Fell by 37% YoY to $0.39.
- Diluted EPS (non-GAAP): Decreased by 31% YoY to $0.50.
Cash Flow and Liquidity
- Operating cash flow: Approximately $6.2 billion, steady from the previous quarter.
- Record free cash flow: Nearly $4.0 billion, up 46% YoY.
- Cash, cash equivalents and investments: Increased by 24% YoY to $41.6 billion, reflecting a $4.9 billion increase.
Production and Delivery Metrics
- Total vehicle deliveries: Increased by 7% YoY to 497,099 units.
- Model 3/Y deliveries: Grew by 9% YoY to 481,166 units.
- Total production: Decreased by 5% YoY to 447,450 units.
- Days of supply for inventory: Decreased 47% YoY to 10 days.
- Energy storage deployed: Achieved record deployments of 12.5 GWh, an increase of 81% YoY.
Quarterly Dividend and Share Repurchase
- The report does not mention any declaration of a quarterly dividend or share repurchase during Q3 2025.
Operational Developments
- New Products Launched: Introduced the Model YL and Model Y Performance, alongside newer, more affordable options of Model 3 and Model Y.
- Energy Product Launches: Unveiled Megapack 3 and Megablock for optimized battery installations, and launched a new solar + Powerwall leasing option.
- Ride-hailing Service: Expanded a Robotaxi ride-hailing service in the Bay Area, enhancing operational capacity with real-world data.
- Global Expansion: Opened operations in new markets including India and launched FSD (Supervised) features in Australia and New Zealand.
Outlook
- Tesla noted challenges due to shifting trade and fiscal policies but remains focused on long-term growth and value creation.
- Emphasis on scaling core hardware business and the integration of AI across product offerings.
- Plans to continue investment into expanding production capabilities through the upcoming launch of various products, including Cybercab, Tesla Semi, and Megapack 3 which are on track for production starting in 2026.
Summary
The third quarter of 2025 saw Tesla achieve record vehicle deliveries and free cash flow, despite facing declining operating income and net income. The company is poised for future growth with strategic investments in AI and operational expansions. The conclusion of the report underscores the firm’s commitment to innovation while navigating a complex macroeconomic landscape.
INCOME STATEMENT (Unaudited) ($ in millions, except percentages and per share data)
| Q3-2024 | Q4-2024 | Q1-2025 | Q2-2025 | Q3-2025 | YoY | |
|---|---|---|---|---|---|---|
| Total automotive revenues | 20,016 | 19,798 | 13,967 | 16,661 | 21,205 | 6% |
| Energy generation and storage revenue | 2,376 | 3,061 | 2,730 | 2,789 | 3,415 | 44% |
| Services and other revenue | 2,790 | 2,848 | 2,638 | 3,046 | 3,475 | 25% |
| Total revenues | 25,182 | 25,707 | 19,335 | 22,496 | 28,095 | 12% |
| Total gross profit | 4,997 | 4,179 | 3,153 | 3,878 | 5,054 | 1% |
| Total GAAP gross margin | 19.8% | 16.3% | 16.3% | 17.2% | 18.0% | -185 bp |
| Operating expenses | 2,280 | 2,596 | 2,754 | 2,955 | 3,430 | 50% |
| Income from operations | 2,717 | 1,583 | 399 | 923 | 1,624 | -40% |
| Operating margin | 10.8% | 6.2% | 2.1% | 4.1% | 5.8% | -501 bp |
| Adjusted EBITDA (1) (2) | 4,665 | 4,333 | 2,814 | 3,401 | 4,227 | -9% |
| Adjusted EBITDA margin (1) (2) | 18.5% | 16.9% | 14.6% | 15.1% | 15.0% | -348 bp |
| Net income attributable to common stockholders (GAAP) (1) | 2,173 | 2,128 | 409 | 1,172 | 1,373 | -37% |
| Net income attributable to common stockholders (non-GAAP) (1) (3) | 2,505 | 2,107 | 934 | 1,393 | 1,770 | -29% |
| EPS attributable to common stockholders, diluted (GAAP) (1) | 0.62 | 0.60 | 0.12 | 0.33 | 0.39 | -37% |
| EPS attributable to common stockholders, diluted (non-GAAP) (1) (3) | 0.72 | 0.60 | 0.27 | 0.40 | 0.50 | -31% |
| Net cash provided by operating activities | 6,255 | 4,814 | 2,156 | 2,540 | 6,238 | 0% |
| Capital expenditures (4) | (3,513) | (2,780) | (1,492) | (2,394) | (2,248) | -36% |
| Free cash flow (4) | 2,742 | 2,034 | 664 | 146 | 3,990 | 46% |
| Cash, cash equivalents and investments | 33,648 | 36,563 | 36,996 | 36,782 | 41,647 | 24% |
BALANCE SHEET (Unaudited) In millions of USD
| 30-Sep-24 | 31-Dec-24 | 31-Mar-25 | 30-Jun-25 | 30-Sep-25 | |
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets | |||||
| Cash, cash equivalents and investments | 33,648 | 36,563 | 36,996 | 36,782 | 41,647 |
| Accounts receivable, net | 3,313 | 4,418 | 3,782 | 3,838 | 4,703 |
| Inventory | 14,530 | 12,017 | 13,706 | 14,570 | 12,276 |
| Prepaid expenses and other current assets | 4,888 | 5,362 | 4,905 | 5,943 | 6,027 |
| Total current assets | 56,379 | 58,360 | 59,389 | 61,133 | 64,653 |
| Operating lease vehicles, net | 5,380 | 5,581 | 5,477 | 5,230 | 5,019 |
| Solar energy systems, net | 5,040 | 4,924 | 4,855 | 4,788 | 4,673 |
| Property, plant and equipment, net | 36,116 | 35,836 | 37,088 | 38,574 | 39,407 |
| Operating lease right-of-use assets | 4,867 | 5,160 | 5,330 | 5,633 | 5,783 |
| Digital assets (2) | 729 | 1,076 | 951 | 1,235 | 1,315 |
| Goodwill and intangible assets, net | 411 | 394 | 392 | 396 | 388 |
| Deferred tax assets (2) | 6,366 | 6,524 | 6,687 | 6,721 | 6,637 |
| Other non-current assets | 4,989 | 4,215 | 4,942 | 4,857 | 5,860 |
| Total assets (2) | 120,277 | 122,070 | 125,111 | 128,567 | 133,735 |
| LIABILITIES AND EQUITY | |||||
| Current liabilities | |||||
| Accounts payable | 14,654 | 12,474 | 13,471 | 13,212 | 12,819 |
| Accrued liabilities and other | 10,601 | 10,723 | 10,802 | 11,519 | 12,791 |
| Deferred revenue | 3,031 | 3,168 | 3,243 | 3,237 | 3,756 |
| Current portion of debt and finance leases (1) | 2,291 | 2,456 | 2,237 | 2,040 | 1,924 |
| Total current liabilities | 30,577 | 28,821 | 29,753 | 30,008 | 31,290 |
| Debt and finance leases, net of current portion (1) | 5,405 | 5,757 | 5,292 | 5,180 | 5,778 |
| Deferred revenue, net of current portion | 3,350 | 3,317 | 3,610 | 3,764 | 3,746 |
| Other long-term liabilities | 9,810 | 10,495 | 11,038 | 11,543 | 12,205 |