Why Is Tesla (TSLA) Up 4.9% Since Last Earnings Report?

Core Insights - Tesla's recent performance shows a 4.9% increase in share price since the last earnings report, outperforming the S&P 500 [1] Financial Performance - Tesla reported Q2 2025 earnings per share of 40 cents, exceeding the Zacks Consensus Estimate of 39 cents but down from 52 cents year-over-year [2] - Total revenues for Q2 2025 were $22.5 billion, surpassing the consensus mark of $22.4 billion but declining 12% year-over-year [2] - Automotive revenues totaled $16.7 billion, down 16% year-over-year, and fell short of the estimate of $18.3 billion [4] - Energy Generation and Storage revenues were $2.8 billion, a 7% decline year-over-year, and below the estimate of $3 billion [6] - Services and Other revenues increased by 17% year-over-year to $3 billion, but also missed the estimate of $3.1 billion [6] Production and Deliveries - Q2 2025 production totaled 410,244 units, a slight decline of 0.1% year-over-year, missing the estimate of 453,081 units [3] - Vehicle deliveries were 384,122, down 13.5% year-over-year and below the estimate of 420,079 units [3] - Model 3/Y deliveries were 373,728, an 11.5% decline year-over-year, also falling short of expectations [3] Profitability Metrics - Automotive gross profit (excluding leasing and regulatory credits) was $2.2 billion, with a gross margin of 14.1%, up from 13.9% in Q2 2024 [4] - Operating margin declined by 219 basis points year-over-year to 4.1%, below the estimate of 4.7% [5] Cash Flow and Investments - Cash and cash equivalents totaled $36.8 billion as of June 30, 2025, slightly up from $36.5 billion at the end of 2024 [7] - Net cash provided by operating activities was $2.5 billion, down from $3.6 billion year-over-year [8] - Free cash flow generated was $146 million, significantly lower than the $1.3 billion generated in Q2 2024 [8] Market Sentiment and Estimates - Consensus estimates for Tesla have trended downward, with a shift of -10.73% in the past month [9] - Tesla currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [12] Industry Comparison - Tesla operates within the Zacks Automotive - Domestic industry, where General Motors (GM) has seen an 8% gain over the past month [13] - GM reported revenues of $47.12 billion for the last quarter, reflecting a year-over-year decline of 1.8% [13]