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Why Is Tesla (TSLA) Up 4.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Tesla (TSLA - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Tesla Q2 Earnings Beat Estimates
Tesla 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -10.73% due to these changes.
VGM Scores
Currently, Tesla has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Tesla has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Tesla belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, General Motors (GM - Free Report) , has gained 8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
General Motors reported revenues of $47.12 billion in the last reported quarter, representing a year-over-year change of -1.8%. EPS of $2.53 for the same period compares with $3.06 a year ago.
General Motors is expected to post earnings of $2.29 per share for the current quarter, representing a year-over-year change of -22.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for General Motors. Also, the stock has a VGM Score of B.
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Why Is Tesla (TSLA) Up 4.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Tesla (TSLA - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Tesla due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Tesla Q2 Earnings Beat Estimates
Tesla 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -10.73% due to these changes.
VGM Scores
Currently, Tesla has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Tesla has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Tesla belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, General Motors (GM - Free Report) , has gained 8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
General Motors reported revenues of $47.12 billion in the last reported quarter, representing a year-over-year change of -1.8%. EPS of $2.53 for the same period compares with $3.06 a year ago.
General Motors is expected to post earnings of $2.29 per share for the current quarter, representing a year-over-year change of -22.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for General Motors. Also, the stock has a VGM Score of B.