Core Insights - Tesla urges American consumers to purchase vehicles now due to limited supply and the impending removal of the $7,500 EV tax credit by the end of the quarter [1][2] - The company reported second-quarter revenue of $22.5 billion, marking its sharpest quarterly revenue decline in at least the last 10 years, with earnings per share at 40 cents, below Wall Street's estimate of 42 cents [9][10] - Tesla's stock fell over 4% after hours on the earnings report and is down 17.6% year-to-date [11] Supply and Demand - Limited vehicle supply in the U.S. is expected this quarter, prompting the CFO to recommend placing orders immediately [2] - The removal of the EV tax credit is seen as beneficial for smaller competitors like Lucid and Rivian, who are less reliant on such incentives [2] Financial Performance - Tesla delivered over 384,000 vehicles in the quarter ending in June [3] - The company is experiencing a "weird transition period" as it adjusts to the expiration of incentives and the regulatory environment for autonomous vehicles [8] Cost Pressures - The CFO indicated that tariffs imposed by the Trump administration have raised costs by approximately $300 million this quarter [9] - Tesla is beginning to reduce planned incentives as vehicle sales increase, including perks like free supercharging and discounts for certain groups [3]

Core Viewpoint - Tesla's CEO Elon Musk revealed that the company's upcoming budget-friendly electric vehicle (EV) will resemble the Model Y, addressing investor inquiries during the latest earnings call [1][2][3]. Group 1: Product Details - The new affordable model is described as "just a Model Y," indicating a close resemblance to the existing model [3]. - No specific details regarding the model's features or release date were provided, although production of new vehicles, including more affordable options, is expected to begin in the first half of the year [3]. - The self-driving capabilities of the new model are anticipated to enhance affordability for customers, allowing them to potentially earn money by renting out their vehicles [5][6]. Group 2: Market Context - Musk identified the primary barrier to EV ownership as financial constraints, stating that many potential buyers lack sufficient funds rather than desire for the vehicles [4]. - The Model Y was the best-selling car globally in 2023, but Tesla faces increasing competition from lower-cost EVs offered by Chinese manufacturers [12]. - In the second quarter of 2025, Tesla's sales in China dropped nearly 12% year-over-year, with the company selling 129,000 vehicles [13].

Core Insights - Tesla's second-quarter earnings revealed the steepest year-over-year revenue decline in a decade, falling below Wall Street estimates, leading to a more than 4% drop in share price after the earnings call [1] - CEO Elon Musk indicated that the company is entering a "weird transition period" due to shifting tariffs, unclear fiscal policy impacts, and political sentiment, suggesting potential rough quarters ahead [1][2] - Despite challenges, Musk expressed optimism for Tesla's economics by the end of next year as the company navigates waning EV incentives and evolving autonomous vehicle regulations [2] Group 1: Financial Performance and Future Outlook - The latest earnings report indicates that Tesla's core auto business may have seen the worst behind it, although it remains below what fundamentals would suggest for a trillion-dollar company [3] - Musk anticipates that a more affordable Tesla model, resembling the Model Y, will be available to the public in the fourth quarter [11] - The company plans to expand its vehicle offerings, including the first builds of a more affordable model in June, with volume production expected in the second half of 2025 [13] Group 2: Robotaxi Development - Tesla executives provided updates on the Robotaxi initiative, planning a quasi-robotaxi expansion in the San Francisco Bay Area, with a driver present to expedite the process while awaiting regulatory approval [8][12] - The current Robotaxi service in Austin is limited to select Tesla influencers and investors, with human safety monitors present during rides [9] - Musk has previously missed deadlines for Robotaxi timelines, raising questions about future projections [10] Group 3: Shareholder Concerns and Governance - Musk expressed concerns about his control over Tesla, fearing he could be ousted by activist shareholders if his shares decrease [14] - A significant majority of direct Tesla shareholders (51%) prefer Musk to focus more on the company rather than his political involvement [16] - The CFO declined to discuss potential investments in Musk's other company, xAI, during the earnings call, indicating a desire to keep the focus on Tesla [17][18]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements show a YoY decrease in revenue and net income despite an increase in total assets [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $128.57 billion, driven by property and equipment, while total liabilities also increased Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $61,133 | $58,360 | | Cash and cash equivalents | $15,587 | $16,139 | | Inventory | $14,570 | $12,017 | | **Property, plant and equipment, net** | $38,574 | $35,836 | | **Total Assets** | **$128,567** | **$122,070** | | **Total Current Liabilities** | $30,008 | $28,821 | | **Total Liabilities** | **$50,495** | **$48,390** | | **Total Stockholders' Equity** | **$77,314** | **$72,913** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue and net income declined YoY due to lower automotive sales and increased operating expenses Q2 2025 vs Q2 2024 Performance (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$22,496** | **$25,500** | **(11.8%)** | | Automotive Revenues | $16,661 | $19,878 | (16.2%) | | Energy Gen. & Storage | $2,789 | $3,014 | (7.5%) | | Services and Other | $3,046 | $2,608 | 16.8% | | **Gross Profit** | **$3,878** | **$4,578** | **(15.3%)** | | **Income from Operations** | **$923** | **$1,605** | **(42.5%)** | | **Net Income (to common stockholders)** | **$1,172** | **$1,400** | **(16.3%)** | | **Diluted EPS** | **$0.33** | **$0.40** | **(17.5%)** | Six Months 2025 vs 2024 Performance (in millions, except EPS) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$41,831** | **$46,801** | **(10.6%)** | | **Gross Profit** | **$7,031** | **$8,274** | **(15.0%)** | | **Income from Operations** | **$1,322** | **$2,776** | **(52.4%)** | | **Net Income (to common stockholders)** | **$1,581** | **$2,790** | **(43.3%)** | | **Diluted EPS** | **$0.45** | **$0.81** | **(44.4%)** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $4.70 billion for H1 2025, while net cash used in investing activities decreased Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$4,696** | **$3,854** | | Net cash used in investing activities | ($4,595) | ($8,309) | | Net cash (used in) provided by financing activities | ($554) | $2,736 | | **Net decrease in cash** | **($302)** | **($1,835)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Disclosures highlight deferred FSD revenue, Bitcoin holdings, increased finished goods inventory, and total debt - Deferred revenue related to FSD features and other items amounted to **$3.75 billion** as of June 30, 2025[30](index=30&type=chunk) - As of June 30, 2025, the company held **11,509 units of Bitcoin** at a cost of $386 million, with a fair value of **$1.235 billion**[54](index=54&type=chunk) - **Finished goods inventory increased to $6.39 billion** from $3.94 billion at the end of 2024, contributing to a total inventory of $14.57 billion[58](index=58&type=chunk) - Total debt and finance leases stood at **$7.22 billion** as of June 30, 2025, with an additional **$5.00 billion available** under an unused credit facility[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses decreased revenue and income, focusing on future growth from FSD and cost reductions [Overview](index=26&type=section&id=MD&A%20Overview) The company focuses on profitable growth, FSD deployment, and cost reduction amid lower H1 2025 vehicle deliveries - Produced approximately **773,000 consumer vehicles** and delivered approximately **721,000** through Q2 2025[103](index=103&type=chunk) - **Launched Robotaxi service in Austin** in June 2025, capitalizing on AI investments[103](index=103&type=chunk) - Deployed **20.0 GWh of energy storage products** through Q2 2025[104](index=104&type=chunk) - Ended Q2 2025 with **$36.78 billion in cash and cash equivalents and investments**[106](index=106&type=chunk) [Management Opportunities, Challenges and 2025 Outlook](index=27&type=section&id=MD&A%20Outlook) Future growth relies on new products and autonomy, facing challenges from competition and regulatory changes - The company's factories are preparing for the **release of new models later in 2025**[107](index=107&type=chunk) - Challenges include cyclical industry trends, political uncertainty, inflationary pressures, and **rising interest rates**[110](index=110&type=chunk) - The recently signed **OBBBA, which removes certain EV tax credits**, may negatively impact consumer demand[111](index=111&type=chunk) - Capital expenditures are expected to **exceed $9.00 billion in 2025**[114](index=114&type=chunk) [Results of Operations](index=29&type=section&id=MD&A%20Results%20of%20Operations) Q2 revenue fell 12% YoY, driven by lower automotive sales, while energy gross margin significantly improved - Q2 automotive sales revenue **decreased by $2.74 billion (15%) YoY**, due to a decrease of approximately 57,000 vehicle deliveries and lower ASPs[119](index=119&type=chunk) - Q2 automotive regulatory credits revenue **decreased by $451 million (51%) YoY**[121](index=121&type=chunk) - Q2 energy generation and storage **gross margin increased to 30.3%** from 24.6% YoY, due to lower average costs[133](index=133&type=chunk) - Q2 R&D expenses **increased by $515 million (48%) YoY**, primarily due to costs related to AI and other new technology programs[134](index=134&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=MD&A%20Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity with strong cash reserves to fund over $9.00 billion in 2025 capex - The company believes current sources of funds will provide **adequate liquidity for the next 12 months** and in the long-term[143](index=143&type=chunk) - As of June 30, 2025, the company had **$15.59 billion in cash and cash equivalents** and **$5.00 billion of unused committed credit**[148](index=148&type=chunk) - Expected capital expenditures for 2025 are projected to **exceed $9.00 billion**[145](index=145&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is unhedged foreign currency exposure, mainly from the yuan and euro - The company's main market risk is **foreign currency risk** related to revenues and expenses denominated in currencies like the Chinese yuan and euro[155](index=155&type=chunk) - A reasonably possible adverse change of **10% in foreign currency exchange rates** could impact net income before taxes by **$1.31 billion**[157](index=157&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The CEO and CFO concluded that as of June 30, 2025, the company's **disclosure controls and procedures were effective**[159](index=159&type=chunk) - **No material changes** occurred in the internal control over financial reporting during the quarter ended June 30, 2025[160](index=160&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company faces material litigation concerning the CEO Performance Award, discrimination claims, and Autopilot/FSD - The company is appealing a court decision that **rescinded the 2018 CEO Performance Award** and awarded plaintiff's counsel $345 million in fees[77](index=77&type=chunk) - The company is involved in ongoing litigation and investigations regarding **alleged systemic race discrimination and harassment**[86](index=86&type=chunk)[87](index=87&type=chunk) - Tesla is defending against multiple proposed class-action lawsuits alleging **misrepresentations related to Autopilot and FSD**[89](index=89&type=chunk)[90](index=90&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The reduction or elimination of government incentives for EVs and energy products poses a significant risk to demand - Recent governmental actions have **repealed and/or restricted consumer tax credits**, which may negatively impact demand for Tesla's products[163](index=163&type=chunk) - Provisions of the **OBBBA could increase battery cell expenses** and consumer costs for energy products, negatively impacting demand[164](index=164&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the quarter - **None**[165](index=165&type=chunk) [Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for the quarter - **None**[166](index=166&type=chunk) [Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[167](index=167&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) A director adopted a Rule 10b5-1 trading plan for the potential sale of up to 240,000 shares of common stock - On May 20, 2025, director James Murdoch adopted a **Rule 10b5-1 trading arrangement** for the potential sale of up to **240,000 shares**[169](index=169&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including required certifications and XBRL data

[Music] Hey, I'm Kramer. Welcome to Mad Money. Welcome to Craig Friends.I'm just trying to make you a little money. My job is not just to entertain you. It's to put it in context.So call me 1 800 743 CBC Jim Kramer. Sometimes you just can't pin a market down. You see things that are so solid, real companies doing real things and getting rewarded for them.Then you see other companies, small cap companies that are being pushed higher by hedge funds and social media with stocks that have no business going high ...

Core Viewpoint - Tesla's Q2 earnings results slightly missed expectations on both revenue and adjusted EPS, but gross margins exceeded forecasts, indicating a potential stabilization in profitability despite challenges in the core EV business [1][6]. Financial Performance - Q2 revenue was reported at $22.50 billion, slightly below Wall Street's estimate of $22.64 billion [6]. - Adjusted EPS for Q2 was $0.40, compared to Wall Street's expectation of $0.42 [6]. - Gross margins were 17.2%, surpassing the expected 16.5% [6]. Positive Aspects - Tesla reported a gain of $284 million on digital assets, maintaining a significant holding of 11,509 Bitcoin valued at over $1 billion [2]. - The energy division, which includes solar and energy storage products, achieved record gross profit of $2.6 billion in 2024, with Q2 2025 gross profit reaching $846 million [3]. Negative Aspects - Free cash flow for Tesla was $146 million, falling short of Wall Street's estimate of $760 million, attributed to investments in retooling factories and transitioning businesses [4]. Future Outlook - The company needs to demonstrate stabilization in its core EV business, successful scaling of its robotaxi service, and continued growth in its energy segment to regain investor confidence [5].

Hi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 27 years old.In 2023 I graduated in Business Administration and I completed CFA level 1 in 2024. I am currently a Popular Investor on the investing platform eToro, you can see there my public portfolio. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. That was the spark that introduced me to a new world, but over time I realized that it was not my path: too ma ...

Core Insights - Tesla reported $22.5 billion in revenue for Q2 2025, marking an 11.8% year-over-year decline, with an EPS of $0.40 compared to $0.52 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $22.43 billion by 0.28%, while the EPS surpassed the consensus estimate of $0.39 by 2.56% [1] Financial Performance Metrics - Total vehicle deliveries were 384,122, slightly below the estimated 386,031 [4] - Model 3/Y deliveries reached 373,728, exceeding the average estimate of 371,135 [4] - Automotive sales revenue was $15.79 billion, falling short of the $16.48 billion estimate, representing a 14.8% decline year-over-year [4] - Energy generation and storage revenue was $2.79 billion, compared to the $3.29 billion estimate, reflecting a 7.5% year-over-year decrease [4] - Services and other revenue increased to $3.05 billion, surpassing the $2.93 billion estimate, showing a 16.8% year-over-year growth [4] - Automotive regulatory credits revenue was $439 million, significantly lower than the $588.49 million estimate, indicating a 50.7% year-over-year decline [4] - Total Automotive Revenue was $16.66 billion, exceeding the $15.66 billion estimate, but still representing a 16.2% year-over-year decline [4] - Gross profit from total automotive sales was $2.87 billion, higher than the $2.64 billion estimate [4] Stock Performance - Tesla's shares have returned -2.5% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The total automotive revenue increased by 19% sequentially, despite total deliveries only improving by 14%, primarily due to improved average selling prices (ASPs) from the new Model Y [38] - Operating cash flows increased sequentially, resulting in $146 million of free cash flow, while capital expenditures (CapEx) are expected to exceed $9 billion for the year [42][43] - The cost of tariffs increased by approximately $300 million sequentially, with two-thirds of that impact in automotive and the rest in energy [39] Business Line Data and Key Metrics Changes - The energy generation and solar business margins improved sequentially, achieving the highest gross profit for the business yet, despite deployment reductions [39] - The production of the new Model Y ramped up across all factories, and the rollout of the robotaxi service in Austin was highlighted as a significant achievement [33][34] - Full self-driving (FSD) adoption rates have increased significantly since the launch of version 12, with a 25% increase in penetration rates [107] Market Data and Key Metrics Changes - Model Y became the best-selling car in several countries, including Turkey, Netherlands, Switzerland, and Austria, indicating strong international demand [9] - The company is working to obtain regulatory approvals for autonomous ride-hailing services in various states, aiming to cover half the U.S. population by the end of the year [7][8] Company Strategy and Development Direction - The company is focusing on expanding its robotaxi service and enhancing its autonomous driving capabilities, with plans to increase service areas significantly [5][44] - Tesla aims to maintain its lead in energy storage and AI initiatives, with ongoing investments in manufacturing and technology development [43][75] - The company is transitioning from a pre-autonomy to a post-autonomy world, with a new master plan in development to articulate this vision [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that if Tesla continues to execute well, it could become the most valuable company in the world [29] - The company is cautious about regulatory approvals and safety, emphasizing the importance of a careful rollout of autonomous services [52][56] - Management acknowledged near-term challenges due to the expiration of EV credits and tariffs but remains focused on long-term investments in AI and robotics [43] Other Important Information - The company is experiencing challenges in the residential storage business due to regulatory changes and tariffs, which may impact demand and profitability [41] - The introduction of the Tesla Dyna has garnered worldwide attention, showcasing the company's innovative approach beyond automotive products [14] Q&A Session Summary Question: Can you give insight into how robo taxis have been performing? - The robo taxis have been performing well in Austin, with plans to expand the operating region significantly [45] Question: What are the key technical and regulatory hurdles for unsupervised FSD? - Unsupervised FSD is expected to be available for personal use by the end of the year in certain geographies, with a focus on safety [47][52] Question: What specific factory tasks is Optimus currently performing? - Optimus is expected to start production in early next year, with a goal of producing 100,000 units per month within five years [59][62] Question: Can you provide an update on the development of more affordable models? - Production of lower-cost models started in June, with plans to avoid negatively impacting revenue or gross margin [63][64] Question: How will the elimination of tax credits for solar projects affect sales? - The sales pipeline for Megapack is diversified, and the company expects continued growth in standalone storage projects despite unfavorable solar policies [75] Question: What are the costs associated with scaling the robotaxi business? - The company plans to use its balance sheet for funding in the interim, with potential for debt financing once a clear cash flow stream is established [104][105]

Financial Data and Key Metrics Changes - The total automotive revenue increased by 19% sequentially, despite total deliveries only improving by 14% [35] - The cost of tariffs increased around $300 million sequentially, with approximately two-thirds of that impact in automotive and the rest in energy [36] - Operating cash flows increased sequentially, resulting in $146 million of free cash flow [39] Business Line Data and Key Metrics Changes - The energy generation and solar business margins improved sequentially, while deployment reduced primarily due to the ramp of power deployments at higher margins [36] - The margins for service and other businesses improved sequentially, primarily due to higher profits from supercharging and improvements in insurance and service center profitability [38] - The production of the new Model Y ramped up at all factories, and the rollout of robotaxis service in Austin was initiated [30][31] Market Data and Key Metrics Changes - Model Y became the best-selling car in Turkey, Netherlands, Switzerland, and Austria, indicating strong international demand [8] - The company expects to expand its autonomous ride-hailing service to cover half the US population by the end of the year, pending regulatory approvals [6][7] Company Strategy and Development Direction - The company is focusing on expanding its robotaxi service and aims to increase the service area in Austin significantly [4][6] - There is a strong emphasis on autonomy as a key differentiator, with plans to enhance the full self-driving (FSD) experience and increase adoption rates [9][34] - The company is investing heavily in AI and robotics, with expectations to scale production of the Optimus robot significantly in the coming years [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that if the company continues to execute well, it could become the most valuable company in the world [27][28] - There are concerns about the impact of the repeal of the IRA EV credit and tariffs on near-term business performance, but management believes long-term investments in AI and energy will pay off [31][40] Other Important Information - The company is working on regulatory approvals for autonomous services in various states, including the Bay Area, Nevada, and Florida [6][10] - The company has seen a marked improvement in FSD adoption rates in North America since the launch of version 12 [35][100] Q&A Session Summary Question: Can you give insight into how robo taxis have been performing? - The robo taxis have been performing well in Austin, with plans to expand the operating region significantly [42] Question: What are the key technical and regulatory hurdles for unsupervised FSD? - Unsupervised FSD is expected to be available for personal use by the end of the year in certain geographies, with a focus on safety [44][45] Question: What specific factory tasks is Optimus currently performing? - The Optimus design is expected to be finalized soon, with production ramping up in early next year [49][50] Question: Can you provide an update on the development of more affordable models? - Production of lower-cost models started in June, with a focus on maximizing production without negatively impacting revenue [53] Question: How will the elimination of tax credits for solar projects affect sales? - The sales pipeline is diversified, and while the recent bill was not favorable, solar projects are still expected to be built due to necessity [66] Question: Can you comment on FSD subscription trends? - There has been a 25% increase in FSD adoption since the launch of version 12, with efforts to educate customers on its benefits [100][102]