Tesla(US:TSLA)2026-01-29 01:55Production and Deliveries - In 2025, the company produced approximately 1.66 million consumer vehicles and delivered approximately 1.64 million consumer vehicles, focusing on profitable growth through an efficiently managed product portfolio [207]. - The company completed the refresh of its vehicle lineup in 2025 with the launch of the new Model Y and additional variants for Model 3 and Model Y [211]. Financial Performance - Total revenues for 2025 were $94.83 billion, a decrease of $2.86 billion compared to the prior year, while net income attributable to common stockholders was $3.79 billion, down $3.30 billion from the previous year [209]. - Total automotive revenues decreased by $7.54 billion, or 10%, in 2025 compared to 2024 [237]. - Total revenues decreased by $2.86 billion, or 3%, in 2025 compared to 2024, with a slight increase of 1% from 2023 [237]. - The total automotive and services segment revenue decreased by $5.55 billion, or 6%, in 2025 compared to 2024 [237]. - Total gross profit decreased slightly from $17.45 billion in 2024 to $17.09 billion in 2025, with total gross margin remaining relatively stable at 18.0% [1]. Cash Flow and Liquidity - The company ended 2025 with $44.06 billion in cash and cash equivalents, an increase of $7.50 billion from the end of 2024, with operating cash flows of $14.75 billion [210]. - As of December 31, 2025, the company had $16.51 billion in cash and cash equivalents and $27.55 billion in short-term investments [277]. - Net cash provided by operating activities decreased by $176 million to $14.75 billion in 2025 from $14.92 billion in 2024 [281]. - Cash flows from financing activities decreased by $2.71 billion to $1.14 billion in 2025, mainly due to increased debt repayments [283]. - The company holds $6.43 billion in unused committed credit amounts as of December 31, 2025 [277]. Capital Expenditures and Investments - Capital expenditures in 2025 amounted to $8.53 billion, a decrease of $2.82 billion compared to $11.34 billion in 2024, reflecting a focus on critical high-value investments [210]. - The company expects capital expenditures to exceed $20 billion in 2026, driven by AI initiatives and the expansion of manufacturing and R&D facilities [218]. - The company anticipates continued net positive operating cash flow to support ongoing operations and R&D projects [270]. Revenue Segments - Automotive sales revenue decreased by $6.66 billion, or 9%, in 2025 compared to 2024, attributed to an 8% decrease in cash deliveries and lower average selling prices [237]. - Automotive regulatory credits revenue fell by $770 million, or 28%, in 2025 compared to 2024, influenced by regulatory changes and demand fluctuations from other manufacturers [243]. - Services and other revenue increased by $2.00 billion, or 19%, in 2025 compared to 2024, driven by higher paid Supercharging sessions, non-warranty maintenance services, and used vehicle sales [244]. - Energy generation and storage revenue rose by $2.69 billion, or 27%, in 2025 compared to 2024, primarily due to increased deployments of Megapack and Powerwall [246]. - The energy generation and storage segment revenue increased by $2.69 billion, or 27%, in 2025 compared to 2024, indicating strong growth in this area [246]. Expenses and Costs - Total automotive cost of revenues decreased by $5.71 billion, or 9%, in 2025 compared to 2024, primarily due to a decrease in deliveries and lower average cost per unit [251]. - Gross margin for total automotive decreased from 18.4% to 17.8% in 2025 compared to 2024, mainly due to a decrease in regulatory credits revenue [253]. - Research and development (R&D) expense increased by $1.87 billion, or 41%, in 2025 compared to 2024, with R&D expense as a percentage of revenue rising from 5% to 7% [259]. - Selling, general and administrative (SG&A) expenses increased by $684 million, or 13%, in 2025 compared to 2024, driven by higher operating expenses and employee costs [261]. - Cost of energy generation and storage revenue increased by $1.52 billion, or 20%, in 2025 compared to 2024, primarily due to increases in Megapack and Powerwall deployments [256]. - Gross margin for energy generation and storage increased from 26.2% to 29.8% in 2025 compared to 2024, attributed to changes in revenue and cost of energy generation and storage [257]. Risks and Future Outlook - The company recognizes that changes in government policies and tariffs may impact production costs and consumer demand for electric vehicles [215]. - The company is adapting its strategy to meet liquidity and risk objectives, including investing in U.S. government securities and expanding its product roadmap [278]. - The company faces foreign currency risks, particularly with the Chinese yuan and euro, which could impact net income by up to $1.70 billion due to exchange rate fluctuations [288]. - Other (expense) income, net, changed unfavorably by $1.11 billion in 2025 compared to 2024, primarily due to mark-to-market on bitcoin digital assets and foreign currency fluctuations [266]. - Provision for income taxes decreased by $414 million in 2025 compared to 2024, with the effective tax rate increasing from 20% to 27% [267]. New Initiatives - The company launched the Robotaxi service in June 2025, capitalizing on AI investments to advance a service-driven business model [207]. - The company is focused on vertically integrating and localizing its supply chain to reduce costs and improve vehicle affordability [213].