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Tesla Q2 Earnings Surpass Expectations, Revenues Decline Y/Y
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Key Takeaways
Tesla posted Q2 EPS of 40 cents vs. 39 cents estimate, with revenues down 12% year over year to $22.5 billion.
Vehicle deliveries declined 13.5% year over year, missing expectations at 384,122 units in total.
Automotive revenues dropped 16% to $16.7B, with regulatory credit sales plunging over 50% year over year.
Tesla (TSLA - Free Report) reported second-quarter 2025 earnings per share of 40 cents, which topped the Zacks Consensus Estimate of 39 cents but decreased from the year-ago figure of 52 cents. Total revenues of $22.5 billion surpassed the consensus mark of $22.4 billion but declined 12% year over year.
Tesla’s second-quarter production totaled 410,244 units (396,835 Model 3/Y and 13,409 other models), which declined 0.1% year over year and missed our estimate of 453,081 units. The company delivered 384,122 vehicles, which fell 13.5% year over year and lagged our estimate of 420,079 units. The Model 3/Y registered deliveries of 373,728 vehicles, which declined 11.5% year over year and fell short of our expectations of 400,574 units.
Total automotive revenues of $16.7 billion were down 16% year over year and lagged our estimate of $18.3 billion. The reported figure also included $439 million from the sale of regulatory credits for electric vehicles, which decreased 50.7% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $15.8 billion, which missed our projection of $17.4 billion on lower-than-expected deliveries. Automotive gross profit (excluding automotive leasing and regulatory credits) came in at $2.2 billion. Automotive gross margin came in at 14.1%, up from 13.9% reported in second-quarter 2024.
Tesla’s operating margin declined 219 basis points year over year to 4.1% in the quarter under discussion and lagged our estimate of 4.7%.
Energy Generation and Storage revenues came in at $2.8 billion in second-quarter 2025, falling 7% year over year but lagging our estimate of $3 billion. Notably, energy storage deployments came in at 9.6 GWh. Services and Other revenues were $3 billion, up 17% year over year. However, the metric fell short of our estimate of $3.1 billion. Tesla ended second-quarter 2025 with 70,228 Supercharger connectors.
Financials
Tesla had cash/cash equivalents/investments of $36.8 billion as of June 30, 2025, compared with $36.5 billion as of Dec. 31, 2024. Long-term debt and finance leases, net of the current portion, totaled $5.2 billion, down from $5.8 billion as of Dec. 31, 2024.
Net cash provided by operating activities amounted to $2.5 billion in second-quarter 2025, down from $3.6 billion in the year-ago period. Capital expenditure totaled $2.4 billion in the quarter under review. Tesla generated free cash flow of $146 million during the reported quarter compared with $1.3 billion generated in the second quarter of 2024.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales implies year-over-year growth of 94.14%. EPS estimates for 2025 and 2026 have improved 43 cents and 68 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 2.86% and 17.65%, respectively. EPS estimates for fiscal 2025 and 2026 have improved a penny each in the past seven days.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 12.12%, respectively. EPS estimates for 2025 and 2026 have improved 34 cents and 38 cents, respectively, in the past 30 days.
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Tesla Q2 Earnings Surpass Expectations, Revenues Decline Y/Y
Key Takeaways
Tesla (TSLA - Free Report) reported second-quarter 2025 earnings per share of 40 cents, which topped the Zacks Consensus Estimate of 39 cents but decreased from the year-ago figure of 52 cents. Total revenues of $22.5 billion surpassed the consensus mark of $22.4 billion but declined 12% year over year.
Tesla, Inc. Price, Consensus and EPS Surprise
Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote
Key Takeaways
Tesla’s second-quarter production totaled 410,244 units (396,835 Model 3/Y and 13,409 other models), which declined 0.1% year over year and missed our estimate of 453,081 units. The company delivered 384,122 vehicles, which fell 13.5% year over year and lagged our estimate of 420,079 units. The Model 3/Y registered deliveries of 373,728 vehicles, which declined 11.5% year over year and fell short of our expectations of 400,574 units.
Total automotive revenues of $16.7 billion were down 16% year over year and lagged our estimate of $18.3 billion. The reported figure also included $439 million from the sale of regulatory credits for electric vehicles, which decreased 50.7% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $15.8 billion, which missed our projection of $17.4 billion on lower-than-expected deliveries. Automotive gross profit (excluding automotive leasing and regulatory credits) came in at $2.2 billion. Automotive gross margin came in at 14.1%, up from 13.9% reported in second-quarter 2024.
Tesla’s operating margin declined 219 basis points year over year to 4.1% in the quarter under discussion and lagged our estimate of 4.7%.
Energy Generation and Storage revenues came in at $2.8 billion in second-quarter 2025, falling 7% year over year but lagging our estimate of $3 billion. Notably, energy storage deployments came in at 9.6 GWh. Services and Other revenues were $3 billion, up 17% year over year. However, the metric fell short of our estimate of $3.1 billion. Tesla ended second-quarter 2025 with 70,228 Supercharger connectors.
Financials
Tesla had cash/cash equivalents/investments of $36.8 billion as of June 30, 2025, compared with $36.5 billion as of Dec. 31, 2024. Long-term debt and finance leases, net of the current portion, totaled $5.2 billion, down from $5.8 billion as of Dec. 31, 2024.
Net cash provided by operating activities amounted to $2.5 billion in second-quarter 2025, down from $3.6 billion in the year-ago period. Capital expenditure totaled $2.4 billion in the quarter under review. Tesla generated free cash flow of $146 million during the reported quarter compared with $1.3 billion generated in the second quarter of 2024.
Tesla’s Zacks Rank & Key Picks
TSLA carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , OPENLANE, Inc. (KAR - Free Report) and Ferrari N.V. (RACE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales implies year-over-year growth of 94.14%. EPS estimates for 2025 and 2026 have improved 43 cents and 68 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 2.86% and 17.65%, respectively. EPS estimates for fiscal 2025 and 2026 have improved a penny each in the past seven days.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 12.12%, respectively. EPS estimates for 2025 and 2026 have improved 34 cents and 38 cents, respectively, in the past 30 days.