Tesla (TSLA) Q2 Earnings: Revenue Down, Focus on Next-Gen Tech; Shares Fall 8.2%
Tesla (TSLA) stock after hours $317.80 −14.76 (4.44%)
🧾 Key Earnings Highlights
- Revenue: $22.5 billion
→ Down ~12% YoY (Q2 2024: $25.5B) - GAAP Net Income: ~$1.17 billion
→ ~16% decline YoY - Non-GAAP EPS: $0.40
- GAAP EPS: $0.33
- Operating Margin: ~4.1–4.2%
→ Down ~2.2 percentage points YoY - Free Cash Flow: ~$100M–146M
→ Down sharply from ~$1.34B YoY - Vehicle Deliveries: ~384,122
→ Down ~13–14% YoY
🧩 Key Context & Analysis
- Tesla’s steepest quarterly revenue drop in over a decade.
- Lower vehicle prices, weaker global EV demand, reduced regulatory credits all pressured profits.
- Profitability also impacted by rising investment in AI, Full-Self Driving (FSD), and robotics.
🚀 Strategic Updates
- Affordable EV Ramps:
→ First low-cost Model 3/Y units produced in June
→ Full-scale volume expected in H2 2025 - Robotaxi Pilot Program:
→ Soft-launched in Austin
→ Elon Musk: Targeting coverage of ~50% of U.S. population by year-end - AI/Autonomy Focus:
→ Increased R&D spend on Optimus humanoid robot, FSD, and Cybercab platform
→ Pivoting long-term strategy from pure EVs to autonomy & robotics
📉 Market Reaction
- Stock Reaction – July 24, 2025
- Closing Price: $305.30
- Change: –$27.26 (–8.20%) | Volume: 156,966,023
- OHLC: Open $310.00, High $310.15, Low $300.41, Close $305.30
✅ Summary
Tesla’s Q2 reflected a challenging macro and competitive environment, with notable drops in revenue and profitability. However, the company is clearly steering toward a next-gen playbook focused on autonomous mobility, lower-cost vehicles, and robotics. Elon Musk warns of more volatility ahead — but investors are watching for signs of turnaround via innovation, not just car sales.