# Tesla, Inc. (TSLA) Q2 2025 Financial Results Summary
Tesla, Inc. (TSLA) released its Q2 2025 financial results on July 23, 2025. The results showcase significant developments as the company transitions towards leadership in artificial intelligence and robotics, alongside its established electric vehicle and renewable energy sectors.
### Key Financial Highlights:
– **Total Revenues**: $22.5 billion, down **12%** year-over-year (YoY). This decline was affected by:
– A decrease in vehicle deliveries.
– Lower regulatory credit revenue.
– Reduced vehicle average selling price (ASP).
– Decline in energy generation and storage revenue.
– **Automotive Revenues**: $16.7 billion, down **16%** YoY.
– **Energy Generation and Storage Revenues**: $2.8 billion, down **7%** YoY.
– **Services and Other Revenues**: $3.0 billion, up **17%** YoY.
– **Total Gross Profit**: $3.9 billion, down **15%** YoY.
– **GAAP Operating Income**: $0.9 billion, down **42%** YoY, yielded an operating margin of **4.1%**, a decrease of **219 basis points** (bps) YoY.
– **Net Income (GAAP)**: $1.2 billion, down **16%** YoY.
– **Non-GAAP Net Income**: $1.4 billion, down **23%** YoY.
– **Earnings Per Share (EPS)**:
– **GAAP**: $0.33, down **18%** YoY.
– **Non-GAAP**: $0.40, down **23%** YoY.
### Cash Flow Metrics:
– **Operating Cash Flow**: $2.5 billion.
– **Free Cash Flow**: $0.1 billion, a significant **89%** decrease YoY.
– **Cash, Cash Equivalents and Investments**: $36.8 billion, a **20%** increase YoY, though a decrease of $0.2 billion sequentially.
### Operational Highlights:
– Tesla launched its first Robotaxi service in Austin, marking a step into autonomy with a camera-only architecture.
– Achieved **12 consecutive quarterly records** in energy storage deployments.
– Delivered the first fully autonomous customer vehicle.
– Expanded Megapack production at Gigafactory Shanghai.
– Continued the development of new vehicle models, including production of a more affordable model set to begin in the latter half of 2025.
### Production and Deliveries:
– **Model 3/Y Production**: 396,835 units, up **3%** YoY.
– **Other Models Production**: 13,409 units, down **45%** YoY.
– **Total Production**: 410,244 units, unchanged YoY.
– **Model 3/Y Deliveries**: 373,728 units, down **12%** YoY.
– **Other Models Deliveries**: 10,394 units, down **52%** YoY.
– **Total Deliveries**: 384,122 units, down **13%** YoY.
### Shareholder Returns:
– The company did not declare a quarterly dividend for this period.
– No share repurchase was noted in this report.
### Outlook:
– Tesla anticipates challenges from shifting global trade policies affecting automotive and energy supply chains.
– Plans to maintain a strong balance sheet while executing on innovations to reduce manufacturing costs and drive profits from AI and software initiatives.
– The launch of new vehicle models in 2025, including a budget-friendly option and the Cybercab (scheduled for volume production in 2026), remains on track.
### Conclusion:
Tesla’s Q2 2025 results reflect a transitional phase for the company, with notable challenges in revenue and profitability metrics compared to the previous year. However, the focus on innovation in AI and expansion in vehicle offerings, along with solid financial backing, sets the stage for future growth.
Here are the extracted tables from the press release:
### CONDENSED CONSOLIDATED STATEMENTS OF INCOME
*(Amounts in millions)*
| Q2-2024 | Q3-2024 | Q4-2024 | Q1-2025 | Q2-2025 | ||
|---|---|---|---|---|---|---|
| REVENUES | ||||||
| Automotive sales | 18,530 | 18,831 | 18,659 | 12,925 | 15,787 | |
| Automotive regulatory credits | 890 | 739 | 692 | 595 | 439 | |
| Automotive leasing | 458 | 446 | 447 | 447 | 435 | |
| Total automotive revenues | 19,878 | 20,016 | 19,798 | 13,967 | 16,661 | |
| Energy generation and storage | 3,014 | 2,376 | 3,061 | 2,730 | 2,789 | |
| Services and other | 2,608 | 2,790 | 2,848 | 2,638 | 3,046 | |
| Total revenues | 25,500 | 25,182 | 25,707 | 19,335 | 22,496 | |
| COST OF REVENUES | ||||||
| Automotive sales | 15,962 | 15,743 | 16,268 | 11,461 | 13,567 | |
| Automotive leasing | 245 | 247 | 242 | 239 | 228 | |
| Total automotive cost of revenues | 16,207 | 15,990 | 16,510 | 11,700 | 13,795 | |
| Energy generation and storage | 2,274 | 1,651 | 2,289 | 1,945 | 1,943 | |
| Services and other | 2,441 | 2,544 | 2,729 | 2,537 | 2,880 | |
| Total cost of revenues | 20,922 | 20,185 | 21,528 | 16,182 | 18,618 | |
| Gross profit | 4,578 | 4,997 | 4,179 | 3,153 | 3,878 | |
| OPERATING EXPENSES | ||||||
| Research and development | 1,074 | 1,039 | 1,276 | 1,409 | 1,589 | |
| Selling, general and administrative | 1,277 | 1,186 | 1,313 | 1,251 | 1,366 | |
| Restructuring and other | 622 | 55 | 7 | 94 | — | |
| Total operating expenses | 2,973 | 2,280 | 2,596 | 2,754 | 2,955 | |
| INCOME FROM OPERATIONS | 1,605 | 2,717 | 1,583 | 399 | 923 | |
| Interest income | 348 | 429 | 442 | 400 | 392 | |
| Interest expense | (86) | (92) | (96) | (91) | (86) | |
| Other (expense) income, net | (1) | (80) | (263) | 595 | (119) | |
| INCOME BEFORE INCOME TAXES | 1,787 | 2,791 | 2,524 | 589 | 1,549 | |
| Provision for income taxes | (1) | 371 | 602 | 381 | 169 | 359 |
| NET INCOME | 1,416 | 2,189 | 2,143 | 420 | 1,190 | |
| Net income attributable to common stockholders (GAAP) | 1,400 | 2,173 | 2,128 | 409 | 1,172 | |
| Net income per share of common stock attributable to common stockholders Basic (1) | $ 0.44 | $ 0.68 | $ 0.66 | $ 0.13 | $ 0.36 | |
| Net income per share of common stock attributable to common stockholders Diluted (1) | $ 0.40 | $ 0.62 | $ 0.60 | $ 0.12 | $ 0.33 | |
| Weighted average shares used in computing net income per share of common stock Basic | 3,191 | 3,198 | 3,213 | 3,218 | 3,223 | |
| Weighted average shares used in computing net income per share of common stock Diluted | 3,481 | 3,497 | 3,517 | 3,521 | 3,519 | |
—
### CONDENSED CONSOLIDATED BALANCE SHEETS
*(Amounts in millions)*
| 30-Jun-24 | 30-Sep-24 | 31-Dec-24 | 31-Mar-25 | 30-Jun-25 | |
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets | |||||
| Cash, cash equivalents and investments | 30,720 | 33,648 | 36,563 | 36,996 | 36,782 |
| Accounts receivable, net | 3,737 | 3,313 | 4,418 | 3,782 | 3,838 |
| Inventory | 14,195 | 14,530 | 12,017 | 13,706 | 14,570 |
| Prepaid expenses and other current assets | 4,325 | 4,888 | 5,362 | 4,905 | 5,943 |
| Total current assets | 52,977 | 56,379 | 58,360 | 59,389 | 61,133 |
| Operating lease vehicles, net | 5,541 | 5,380 | 5,581 | 5,477 | 5,230 |
| Solar energy systems, net | 5,102 | 5,040 | 4,924 | 4,855 | 4,788 |
| Property, plant and equipment, net | 32,902 | 36,116 | 35,836 | 37,088 | 38,574 |
| Operating lease right-of-use assets | 4,563 | 4,867 | 5,160 | 5,330 | 5,633 |
| Digital assets (2) | 722 | 729 | 1,076 | 951 | 1,235 |
| Goodwill and intangible assets, net | 413 | 411 | 394 | 392 | 396 |
| Deferred tax assets (2) | 6,573 | 6,366 | 6,524 | 6,687 | 6,721 |
| Other non-current assets | 4,458 | 4,989 | 4,215 | 4,942 | 4,857 |
| Total assets (2) | 113,251 | 120,277 | 122,070 | 125,111 | 128,567 |
| LIABILITIES AND EQUITY | |||||
| Current liabilities | |||||
| Accounts payable | 13,056 | 14,654 | 12,474 | 13,471 | 13,212 |
| Accrued liabilities and other | 9,616 | 10,601 | 10,723 | 10,802 | 11,519 |
| Deferred revenue | 2,793 | 3,031 | 3,168 | 3,243 | 3,237 |
| Current portion of debt and finance leases (1) | 2,264 | 2,291 | 2,456 | 2,237 | 2,040 |
| Total current liabilities | 27,729 | 30,577 | 28,821 | 29,753 | 30,008 |
| Debt and finance leases, net of current portion (1) | 5,481 | 5,405 | 5,757 | 5,292 | 5,180 |
| Deferred revenue, net of current portion | 3,357 | 3,350 | 3,317 | 3,610 | 3,764 |
| Other long-term liabilities | 9,002 | 9,810 | 10,495 | 11,038 | 11,543 |
| Total liabilities | 45,569 | 49,142 | 48,390 | 49,693 | 50,495 |
| Redeemable noncontrolling interests in subsidiaries | 72 | 70 | 63 | 62 | 61 |
| Total stockholders’ equity (2) | 66,887 | 70,356 | 72,913 | 74,653 | 77,314 |
| Noncontrolling interests in subsidiaries | 723 | 709 | 704 | 703 | 697 |
| Total liabilities and equity (2) | 113,251 | 120,277 | 122,070 | 125,111 | 128,567 |
