Tesla (TSLA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 9% year-over-year to $19.34B, with net income attributable to common stockholders of $409M, down 70% year-over-year, driven by lower vehicle deliveries and reduced average selling prices, partially offset by growth in energy and services segments.

• Produced approximately 363,000 and delivered 336,681 vehicles in Q1 2025; Model Y production ramped across all factories, with a global simultaneous update, an industry first.

• Energy storage business achieved record gross profit and revenue, with deployments reaching 10.4 GWh, up 154% year-over-year, and Powerwall 3 supply constrained due to strong demand.

• Cash and investments totaled $37.0B at quarter-end, up $433M from year-end 2024; operating cash flow was $2.2B, with free cash flow at $0.7B.

• The company remains focused on autonomy, AI, and energy storage as key growth pillars, with plans to launch fully autonomous rides in Austin in June and scale to millions of vehicles by the second half of next year.

Financial highlights

• Total revenues were $19.34B, down 9% year-over-year; automotive sales revenue fell 21% to $12.93B, while energy generation and storage revenue surged 67% to $2.73B.

• GAAP gross margin was 16.3%, down from 17.4% year-over-year; automotive gross margin dropped to 16.2% from 18.5%; energy storage gross margin improved to 28.8%.

• GAAP net income was $409M, down 71% year-over-year; non-GAAP net income was $934M, down 39%.

• Adjusted EBITDA was $2.8B, down 17% year-over-year; adjusted EBITDA margin was 14.6%.

• Other income dropped $472M sequentially, mainly from 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 expected to be slightly slower due to industry turmoil.

• Robotaxi pilot launch in Austin is planned for June, with volume production scheduled for 2026 and millions of autonomous vehicles expected by the second half of next year.

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

• Growth rate for 2025 will depend on autonomy acceleration, production ramp, and macroeconomic factors; guidance to be revisited in Q2 update.