Tesla’s (NASDAQ: TSLA) Q2 2025 earnings are now out. The electric vehicle maker
reported $22.5 billion in revenue and earnings per share of $0.33, falling short of Wall Street expectations.
Analysts had forecast $22.74 billion in revenue and $0.43 EPS for the quarter, according to LSEG. It’s another miss on the top and bottom line for the automaker.
Tesla had already released delivery figures on July 2, reporting 384,122 vehicles delivered — slightly below the Wall Street forecast of 389,000 and down 13.5% from the same quarter last year.
Tesla Q2 2025 Highlights
Financials
Total revenue: $22.5 billion (down 12% year-over-year)
Operating income: $0.9 billion (down 42% year-over-year)
Operating margin: 4.1% (down from 6.3% in Q2 2024)
GAAP net income: $1.2 billion
GAAP EPS (diluted): $0.33
Non-GAAP EPS (diluted): $0.40
Free cash flow: $146 million (down 89% year-over-year)
Cash and investments: $36.8 billion
Tesla attributed the revenue decline to a drop in vehicle deliveries, lower regulatory credit revenue, and reduced vehicle average selling price.
The sharp decline in regulatory credit revenue — from $890 million in Q2 2024 to $439 million this quarter — was a major factor behind Tesla’s profit drop.
Those subsidies have provided a buffer for the beleaguered company as it faces headwinds from declining vehicle deliveries, shrinking margins, and intensifying competition in the global EV market.
Operations
Robotaxi
Tesla launched its first Robotaxi service in Austin in June, initially operating with a safety rider as it expands coverage and vehicle count, with plans to remove the safety rider entirely as the system matures.
The company said its approach to autonomy is designed to scale beyond Austin, noting: “Our efforts to refine the Robotaxi offering in Austin are not location specific and will allow us to scale to other cities quickly with marginal investment.”
The company also says it completed the first fully autonomous delivery of a new Model Y to a customer’s home, a 30-minute self-driven trip including highway segments.
New Models
Additionally, Tesla began building the first units of what it says is a new, more affordable, autonomy-capable vehicle in June. The company says volume production is slated for the second half of 2025.
It also says it remains on track to produce the purpose-built robotaxi, known as the Cybercab, at volume in 2026.
Battery Supply Chain
Tesla underscored its push to on-shore critical battery production as shifting tariffs from the Trump administration add pressure to global supply chains.
The company said its lithium refining and cathode production plants remain on track to begin production in 2025, and it expects to start producing its first LFP battery cells for energy storage domestically later this year.
These steps are designed to reduce dependence on foreign suppliers and shield Tesla from tariff-driven cost increases while supporting its growing energy and vehicle operations.
Tesla (TSLA) Stock: Defying Fundamentals
Tesla shares have endured a volatile year, falling 12% year-to-date. Yet despite mounting operational and market headwinds, the stock has rebounded sharply from its March low near $220, closing at $332.56 at the end of today’s trading session.
Shares have gained around 3% over the past five sessions, even as analysts question the company’s underlying fundamentals.
Tesla: What to Watch Out For
On today’s earnings call, analysts will seek guidance on Tesla’s planned expansion of its robotaxi service after its limited trial in Austin, the company’s timeline for a lower-cost vehicle, and the ongoing role of regulatory credits in supporting profitability.
In Q1, Tesla reported $595 million in revenue from the sale of regulatory credits — exceeding its net income of $420 million, underscoring its reliance on subsidies to remain profitable.
CEO Elon Musk will also undoubtedly face questions on his relationship with President Donald Trump and his recently announced political party, the America Party.
The company will hold its earnings call at 5:30 PM Eastern.
This is a breaking news story and will be updated as more information becomes available.
Globely News covers the game changers transforming the worlds of business, sports, politics, and technology. From AI and electric vehicles to the rise of China and the NFL's next stars, we've got you covered.