Tesla (TSLA) Q2 2025 earnings summary

Executive summary

• Successfully launched Robotaxi service in Austin in June 2025, with plans for rapid expansion and the first fully autonomous customer vehicle delivery completed.

• Q2 2025 revenue was $22.50B, down $3.00B year-over-year; net income attributable to common stockholders was $1.17B, down $228M year-over-year.

• Model Y achieved best-selling status globally, with strong international launches and top safety ratings.

• Energy storage deployments reached 20.0 GWh through Q2 2025, achieving record profits and ramping production from the Shanghai Megafactory.

• Ended Q2 2025 with $36.78B in cash and investments, up $219M from year-end 2024.

Financial highlights

• Q2 2025 total revenue: $22.50B (down 12% year-over-year); net income: $1.17B; diluted EPS: $0.33 (down from $0.40); gross margin: 17.2% (down from 18.0%).

• Automotive revenue increased 19% sequentially in one quarter, but declined 12% year-over-year; gross margin: 17.2%.

• Energy segment Q2 2025 revenue: $2.79B (down 7% year-over-year); gross margin: 30.3% (up from 24.6%).

• Operating cash flow for H1 2025: $4.70B, up $842M year-over-year; free cash flow for Q2: $146M.

• Cash, cash equivalents, and investments ended at $36.8B, a $0.2B sequential decrease.

Outlook and guidance

• Capital expenditures expected to exceed $9.00B in 2025, with ongoing investments in autonomy, AI, robotics, and global manufacturing.

• Plans for new, more affordable vehicle models remain on track for initial production in H1 2025, with volume production in H2 2025.

• Cybercab Robotaxi is scheduled for volume production in 2026, leveraging an "unboxed" manufacturing strategy.

• Targeting autonomous ride-hailing coverage for half the U.S. population by year-end, subject to regulatory approvals.

• Sufficient liquidity is available to fund the product roadmap and capacity expansion, with a focus on capex efficiency and prudent volume growth.