Tesla Q2 Earnings Highlights: Revenue And Earnings Fall Short; New Models Still Set For 2025–2026

Core Insights - Tesla reported second-quarter revenue of $22.5 billion, a 12% decline year-over-year, missing the consensus estimate of $22.8 billion [1] - Automotive revenue was $16.66 billion, down 16% year-over-year, with earnings per share at 40 cents, below the expected 42 cents [1][2] - The company experienced a decrease in deliveries and average selling prices, although there was slight growth in services and other revenue [2] Financial Performance - Operating income for the quarter was $0.9 billion, a 42% decrease year-over-year, with an operating margin of 4.1% [2] - Tesla's second-quarter deliveries were 384,122, down from 443,956 in the same quarter last year, while production was slightly lower at 410,244 units compared to 410,831 units in the previous year [3] Strategic Initiatives - Tesla launched its first Robotaxi service in Austin, Texas, in June and ended the quarter with $1.24 billion in digital assets, primarily from Bitcoin holdings [4] - The company has $36.8 billion in cash and investments, indicating strong liquidity to support its product roadmap [4][6] Future Outlook - Tesla plans to expand its vehicle offerings with a more affordable model and aims for volume production in the second half of 2025, alongside the Tesla Semi and Cybercab planned for 2026 [5] - The company emphasizes continued investments in CapEx and R&D despite macroeconomic uncertainties, focusing on affordable autonomy-capable vehicles and growth in the Energy business [6][7]