Tesla(US:TSLA) The Motley Foolยท2025-07-23 21:11Core Viewpoint - Tesla's Q2 2025 financial results showed a decline in revenue and earnings per share, attributed to lower deliveries, reduced regulatory credit revenue, and a decrease in average selling price, but the company remains optimistic about future growth opportunities in AI and robotics [3][4]. Financial Performance - Revenue for Q2 2025 was $22.5 billion, down 12% from $25.5 billion in Q2 2024, but exceeded expectations [2]. - Adjusted EPS decreased by 23% from $0.52 in Q2 2024 to $0.40 in Q2 2025, meeting analyst expectations [2]. - Energy generation and storage revenue fell by 7%, from $3.0 billion to $2.8 billion [2]. - Gross margin slightly decreased from 18% to 17.2%, a decline of 80 basis points [2]. Future Outlook - Tesla continues to focus on expanding its vehicle offerings, including a new affordable model expected in the second half of the year and the anticipated volume production of the Semi model and autonomous Cybercab by 2026 [5]. - The company emphasizes its transition from being a leader in electric vehicles and renewable energy to also becoming a leader in AI and robotics [4]. - The rollout of a new, more affordable vehicle model is expected to drive revenue growth in the future, alongside advancements in robotics and autonomous driving [9]. Market Reaction - Following the earnings report, Tesla shares experienced a slight decline of 1.5% in after-market trading, reflecting low investor expectations as the stock was down 17% year to date [6]. - Investors are particularly focused on CEO Elon Musk's vision for future developments and timelines for new product availability [8].