Core Viewpoint - Tesla's Q2 2025 financial report shows a significant decline in both sales and delivery volumes, marking the most severe quarterly sales drop in over a decade [1][2]. Group 1: Financial Performance - Tesla's Q2 revenue was $22.496 billion, a year-on-year decrease of 12%, falling short of market expectations [1]. - The net profit attributable to shareholders (non-GAAP) was $1.393 billion, down 23% year-on-year, with GAAP gross margin decreasing from 18.0% to 17.2% [1]. - The automotive business generated $16.661 billion in revenue, a 16% year-on-year decline, while the service and other business revenue increased by 17% year-on-year to $3.046 billion [2][6]. Group 2: Automotive Business - Global delivery volume in Q2 was 384,000 units, a year-on-year decrease of 13.5%, with significant drops in Model 3/Y sales in several European countries exceeding 70% [2]. - Factors contributing to the decline in sales include tariff and subsidy policy impacts, weakened terminal demand in the US and Europe, increased competition from Chinese automakers, and slow product updates [2]. Group 3: Energy and Storage Business - Revenue from the energy and storage business was $2.789 billion, a 7% year-on-year decline, despite growth in storage market demand [4]. - Tesla plans to manufacture lithium iron phosphate (LFP) batteries in the US to meet market needs, although tariff issues continue to affect the storage business [4][5]. Group 4: Future Plans - Tesla is planning to launch a low-cost version of the Model Y, expected to start at $35,000, to regain market share [3]. - The company is also focusing on cost reduction through innovation and efficient use of existing production capacity before building new production lines [6].