Tesla (TSLA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 9% year-over-year to $19.34B, with net income down 71% to $409M, driven by lower vehicle deliveries and reduced average selling prices, partially offset by growth in energy and services segments.

• Simultaneous global Model Y factory update led to several weeks of lost production but was completed on schedule, demonstrating operational resilience.

• Energy storage business achieved record gross profit and revenue, with deployments reaching 10.4 GWh, up 154% year-over-year.

• Cash and investments increased to $37.0B, with operating cash flow at $2.2B and free cash flow at $0.7B.

• AI, autonomy, and energy storage remain key growth pillars amid ongoing market and trade policy uncertainty.

Financial highlights

• Automotive revenues fell 20% year-over-year to $14.0B, with gross margin declining to 16.2%; energy generation and storage revenue surged 67% to $2.73B, with gross margin improving to 28.8%.

• GAAP gross margin was 16.3%, flat year-over-year; operating margin was 2.1%, down 343 bps.

• Diluted GAAP EPS was $0.12; non-GAAP EPS was $0.27.

• Operating cash flow reached $2.2B, with capital expenditures at $1.49B.

• Other income dropped $472M sequentially, primarily due to Bitcoin mark-to-market losses and FX remeasurement.

Outlook and guidance

• Production of more affordable models is on track to start in H1 2025, leveraging current and next-gen platforms, with ramp-up possibly slower than initially hoped.

• Robotaxi pilot in Austin is set for June, with volume production scheduled for 2026 and millions of autonomous vehicles targeted for the second half of 2026.

• Capital expenditures expected to exceed $10B in 2025, with ongoing investments in autonomy, AI, and global manufacturing expansion.

• Focus remains on profitable growth, cost reductions, new product launches, and expanding energy storage deployments.

• Guidance to be revisited in Q2 update.