Tesla(TSLA) - 2025 Q2 - Quarterly Results

Highlights Q2 2025 marked Tesla's strategic shift to AI and robotics with the Robotaxi launch, achieving $0.9 billion GAAP operating income and key operational milestones Q2 2025 Key Financial & Cash Highlights | Category | Metric | Value | | :--- | :--- | :--- | | Profitability | GAAP operating income | $0.9B | | | GAAP net income | $1.2B | | | Non-GAAP net income | $1.4B | | Cash | Operating cash flow | $2.5B | | | Free cash flow | $0.1B | | | Cash and investments (end of quarter) | $36.8B | - The company launched its first Robotaxi service in Austin, Texas in June, marking the beginning of its transition to becoming a leader in AI, robotics, and related services[6] - Operational achievements include the first fully autonomous delivery of a customer vehicle and the deployment of the first Megapacks from the Shanghai Megafactory[6] - Development continues on future products, with first builds of a more affordable model in June (volume production planned for H2 2025), and ongoing work on the Semi and Cybercab (volume production slated for 2026)[7] Financial Summary In Q2 2025, Tesla reported $22.5 billion in total revenues, a 12% year-over-year decrease, with operating income falling 42% to $0.9 billion, while maintaining a strong $36.8 billion cash position Q2 2025 Financial Performance Summary | Financial Metric | Q2-2025 | YoY Change | | :--- | :--- | :--- | | Total Revenues | $22,496M | -12% | | Total Gross Profit | $3,878M | -15% | | Income from Operations (GAAP) | $923M | -42% | | Operating Margin (GAAP) | 4.1% | -219 bp | | Net Income (GAAP) | $1,172M | -16% | | Diluted EPS (GAAP) | $0.33 | -18% | | Net Income (Non-GAAP) | $1,393M | -23% | | Diluted EPS (Non-GAAP) | $0.40 | -23% | | Free Cash Flow | $146M | -89% | - The 12% YoY decrease in total revenue was driven by a decline in vehicle deliveries, lower vehicle average selling price (ASP) due to mix, and a decline in Energy Generation and Storage revenue, partially offset by growth in Services and Other revenue[13] - The 42% YoY decrease in operating income was primarily impacted by lower regulatory credit revenue, an increase in operating expenses for AI and R&D, and the decline in vehicle deliveries[13] - The company's quarter-end cash, cash equivalents, and investments stood at $36.8 billion, a sequential decrease of $0.2 billion[13] Operational Summary Q2 2025 saw flat vehicle production at 410,000 units, a 13% decrease in deliveries to 384,000, and increased global vehicle inventory, while the Supercharger network and energy storage deployments continued to expand Q2 2025 Key Operational Metrics | Metric | Q2-2025 | YoY Change | | :--- | :--- | :--- | | Total Production | 410,244 | 0% | | Total Deliveries | 384,122 | -13% | | Global Vehicle Inventory (Days of Supply) | 24 | +33% | | Storage Deployed (GWh) | 9.6 | +2% | | Supercharger Stations | 7,377 | +14% | | Supercharger Connectors | 70,228 | +18% | - Production of Model 3/Y increased by 3% YoY, but production of other models (S/X) decreased by 45% YoY[14] - Deliveries for Model 3/Y were down 12% YoY, and deliveries for other models were down 52% YoY[14] Automotive The automotive division achieved its 8-millionth vehicle production milestone, prepared for new model launches, and expanded regionally, while readying FSD (Supervised) for broader release Regional Updates Tesla saw strong regional performance with record test drives in North America, record delivery volumes in several APAC markets, and Model Y remaining a top seller in parts of Europe - North America: Achieved record test drives, up 20% sequentially, and launched the Long Range RWD Model Y[16] - APAC: Gigafactory Shanghai remains the main export hub, with Model Y launched in India and record delivery volumes in South Korea, Malaysia, the Philippines, and Singapore, while preparing for FSD (Supervised) release in China[17] - Europe & Middle East: Model Y was the best-selling vehicle in Norway (YTD) and several other countries in June, with preparations for FSD (Supervised) launch in Europe underway[18] Vehicle Capacity Tesla's current installed annual vehicle capacity exceeds 2.35 million units across its global factories, with Cybercab and Semi production under construction Installed Annual Vehicle Capacity | Factory Location | Model | Capacity | | :--- | :--- | :--- | | California | Model S / Model X | 100,000 | | | Model 3 / Model Y | >550,000 | | Shanghai | Model 3 / Model Y | >950,000 | | Berlin | Model Y | >375,000 | | Texas | Model Y | >250,000 | | | Cybertruck | >125,000 | | | Cybercab | Construction | | Nevada | Tesla Semi | Construction | Core Technology Tesla's core technology efforts focus on advancing AI and autonomy, launching Robotaxi, expanding AI training compute, and on-shoring battery cell and material production AI and Software Key software and AI milestones include the launch of the Robotaxi service, the world's first autonomous vehicle delivery, and significant expansion of AI training compute capacity - Launched Robotaxi service in Austin with a safety rider, with plans to expand coverage and eventually remove the rider[24] - Achieved the world's first autonomous delivery of a new production Model Y to a customer's home[24] - Expanded AI training compute capacity at Gigafactory Texas, bringing the total to 67,000 H100 equivalents[24] - Cumulative miles driven with FSD (Supervised) have surpassed 4.5 billion, with the vast majority of recent miles driven on the V12 architecture[29] Battery, Powertrain and Manufacturing Tesla is advancing vertical integration in its battery supply chain, with U.S. lithium refining and cathode production plants on track for 2025, and domestic LFP cell production beginning later this year - Lithium refining and cathode production plants are on schedule to begin production in 2025, on-shoring critical battery materials to the U.S[27] - The company is on course to begin domestic U.S. production of its first LFP cells for energy storage products later this year[27] Energy & Services and Other The Energy and Services segments demonstrated strong growth, with energy storage deployments achieving a 12th consecutive quarterly record and Services gross profit growing 64% sequentially Energy Generation and Storage The energy business achieved record profitability with $846 million in gross profit, record TTM deployments for the 12th consecutive quarter, and began deploying Megapacks from the Shanghai Megafactory - Energy storage deployments on a trailing twelve-month (TTM) basis achieved their 12th consecutive quarterly record[8][32] - Gross profit for the segment reached a record $846 million[32] - The company started deploying Megapacks from the new Megafactory in Shanghai[32] Services and Other This segment's gross profit grew 64% sequentially, driven by improved Supercharging profitability and network expansion, with AI agents being integrated to enhance customer service - Gross profit grew 64% sequentially, partly due to improved Supercharging gross profit from increased volume[33] - The Supercharger network grew 18% year-over-year, with over 2,900 net new stalls added[33] - AI agents are being integrated into customer service workflows to resolve queries, reduce wait times, and assist technicians[34] Outlook Tesla's outlook focuses on prudently growing vehicle volumes and the energy business, with plans for a more affordable model in 1H 2025 and Cybercab volume production in 2026, expecting AI and software to increasingly supplement hardware profits - Profit: The company expects that over time, hardware-related profits will be accompanied by an acceleration of AI, software, and fleet-based profits[39] - Product: Plans for new vehicles remain on track, including initial production of a more affordable model in 1H 2025[39] - Robotaxi: The purpose-built Robotaxi product, named Cybercab, is scheduled for volume production starting in 2026 and will use a revolutionary "unboxed" manufacturing strategy[39] - Cash: Management states the company has sufficient liquidity to fund its product roadmap and long-term capacity expansion plans while maintaining a strong balance sheet[39] Photos & Charts This section visually showcases Tesla's expanding ecosystem and recent milestones, including FSD (Supervised) testing, autonomous vehicle delivery, the Tesla Diner, the world's largest Supercharger site, and the 8-millionth vehicle production - Images display FSD (Supervised) testing in Paris, London, Sydney, and Rome[43] - A photo documents the first autonomous delivery of a Model Y in Austin, TX[46] - Photos feature the newly opened Tesla Diner, which offers charging, dining, and entertainment[50][52][54] - An image shows progress on the world's largest Supercharger site in Lost Hills, CA, with 168 stalls powered by solar and Megapack[56] - A photo from Gigafactory Berlin-Brandenburg celebrates the production of Tesla's 8-millionth vehicle[58] Key Metrics This section provides graphical representations of key performance indicators on both a quarterly and trailing twelve months (TTM) basis, illustrating trends in vehicle deliveries, cash flow, net income, and Adjusted EBITDA Quarterly Key Metrics The quarterly charts visualize key metrics, showing a dip in deliveries, cash flow, and profitability in Q1 2025, followed by a partial recovery in Q2 2025, with free cash flow significantly declining in recent quarters - Presents quarterly charts for Vehicle Deliveries, Operating Cash Flow, Free Cash Flow, Net Income, and Adjusted EBITDA[60][62] Trailing 12 Months (TTM) Key Metrics The TTM charts smooth out quarterly fluctuations, illustrating longer-term trends of continued growth in vehicle deliveries and operating cash flow, while TTM net income and Adjusted EBITDA have moderated from their peaks - Presents trailing twelve month (TTM) charts for Vehicle Deliveries, Operating Cash Flow, Free Cash Flow, Net Income, and Adjusted EBITDA[64][66] Financial Statements This section contains the unaudited consolidated financial statements for Q2 2025, including the Statement of Operations, Balance Sheet, and Statement of Cash Flows, along with a detailed reconciliation of GAAP to non-GAAP financial measures Statement of Operations For Q2 2025, Tesla reported total revenues of $22.5 billion, a gross profit of $3.9 billion, income from operations of $923 million, and net income attributable to common stockholders of $1.17 billion Q2 2025 Statement of Operations Highlights (in millions) | Line Item | Q2-2025 | | :--- | :--- | | Total Automotive Revenues | $16,661 | | Total Revenues | $22,496 | | Gross Profit | $3,878 | | Income from Operations | $923 | | Net Income Attributable to Common Stockholders | $1,172 | Balance Sheet As of June 30, 2025, Tesla's balance sheet showed total assets of $128.6 billion, total liabilities of $50.5 billion, and $36.8 billion in cash, cash equivalents, and investments, with total stockholders' equity at $77.3 billion Balance Sheet Highlights as of June 30, 2025 (in millions) | Line Item | Amount | | :--- | :--- | | Cash, cash equivalents and investments | $36,782 | | Total Current Assets | $61,133 | | Total Assets | $128,567 | | Total Current Liabilities | $30,008 | | Total Liabilities | $50,495 | | Total Stockholders' Equity | $77,314 | Statement of Cash Flows In Q2 2025, net cash provided by operating activities was $2.54 billion, capital expenditures were $2.39 billion, resulting in a free cash flow of $146 million, with cash used in investing and financing activities totaling $2.94 billion and $222 million, respectively Q2 2025 Cash Flow Highlights (in millions) | Line Item | Q2-2025 | | :--- | :--- | | Net cash provided by operating activities | $2,540 | | Capital expenditures | ($2,394) | | Net cash used in investing activities | ($2,944) | | Net cash used in financing activities | ($222) | Reconciliation of GAAP to Non-GAAP Financial Information This section reconciles GAAP results to non-GAAP measures, showing Q2 2025 non-GAAP net income of $1.39 billion ($0.40 diluted EPS) and Adjusted EBITDA of $3.4 billion with a 15.1% margin Q2 2025 GAAP to Non-GAAP Reconciliation (in millions, except per share data) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Net Income Attributable to Common Stockholders | $1,172 | $1,393 | | Diluted EPS | $0.33 | $0.40 | | Adjusted EBITDA | - | $3,401 | | Adjusted EBITDA Margin | - | 15.1% | Free Cash Flow Reconciliation (in millions) | Line Item | Q2-2025 | | :--- | :--- | | Net cash provided by operating activities (GAAP) | $2,540 | | Capital expenditures | ($2,394) | | Free cash flow (non-GAAP) | $146 | Additional Information This final section provides investor webcast details, defines key non-GAAP and operational terms, explains the rationale for non-GAAP measures, and includes the standard forward-looking statements disclaimer outlining potential business and market risks - Provides details for the live webcast of the Q2 2025 financial results conference call[75] - Defines certain terms used in the report, such as "Free cash flow" (operating cash flow less capital expenditures) and "Adjusted EBITDA (non-GAAP)"[76] - Includes a forward-looking statements disclaimer, which lists important factors and risks that could cause actual results to differ materially from projections[78]