Tesla(US:TSLA)2025-07-24 05:03Summary of Tesla Inc. (TSLA) 2Q25 Conference Call Company Overview - Company: Tesla Inc. (TSLA) - Quarter: 2Q25 Key Financial Results - Revenue: $22,486 million, up 16% quarter-over-quarter (qoq) and down 12% year-over-year (yoy) [2][3] - Non-GAAP Diluted EPS: $0.40, in line with FactSet consensus and above Goldman Sachs estimate of $0.35 [3][8] - Free Cash Flow (FCF): $146 million [3] - Automotive Non-GAAP Gross Margin: 15.0%, above Goldman Sachs estimate of 12.7% and FactSet consensus of ~13.8% [3][5] - Total Company Gross Margin: 17.2%, exceeding Goldman Sachs estimate of 15.8% and FactSet consensus of 16.6% [5] Segment Performance - Automotive Revenue: $16,661 million, up 19% qoq and down 16% yoy [10] - Energy Generation and Storage Revenue: $2,789 million, up 2% qoq and down 7% yoy [10] - Service and Other Revenue: $3,046 million, up 15% qoq and up 17% yoy [10] - Vehicle Deliveries: Approximately 384,000, up 14% qoq and down 13% yoy [4] Production and Delivery Insights - Vehicle Production: Approximately 410,000 vehicles produced, up 13% qoq [4] - Model 3/Y Deliveries: Approximately 374,000, up 15% qoq and down 12% yoy [4] - Other Model Deliveries: Approximately 10,000, down 19% qoq and down 52% yoy [4] Strategic Outlook - Growth Uncertainty: Tesla indicated difficulty in predicting growth rates for its auto and energy businesses due to policy uncertainty [3][10] - New Vehicle Launches: Plans for new vehicles remain on track, including a more affordable model expected in 1H25 and the Model YL deliveries in China anticipated this fall [11][12] - Lithium Refining and Cathode Production: Plans to begin production in 2025 are on track [12] Cost and Margin Analysis - Cost per Vehicle: Increased to approximately $35.9K from $35.5K in 1Q25 [6] - Energy Gross Margin: 30.3%, significantly above the estimate of 23.0% [6] Risks and Price Target - Price Target: $285, implying a downside of 14.2% from the current price of $332.11 [13][15] - Key Risks: Include potential vehicle price reductions, increased competition in EVs, tariff impacts, slower EV demand, and operational risks associated with vertical integration [14] Conclusion - Tesla's 2Q25 results showed a mixed performance with revenue growth but challenges in year-over-year comparisons. The company faces uncertainties in growth projections and competitive pressures, while maintaining a focus on new product launches and margin improvements.