Tesla (TSLA) Reports Record Revenue and Free Cash Flow
Key Points
- Revenue: $28.1 B (+12% YoY) vs. $26.54 B est.
- Non-GAAP EPS: $0.50 (−31% YoY) vs. $0.56 est. (miss).
- GAAP EPS: $0.39 (−37% YoY).
- GAAP Net Income: $1.37 B (−37% YoY).
- Operating Margin: 5.8% (↓ 501 bps YoY).
- Free Cash Flow: $3.99 B (+46% YoY).
- Cash & Investments: $41.6 B (+$4.9 B QoQ).
- Vehicle Deliveries: 497,099 (+7% YoY).
- Energy Storage Deployments: 12.5 GWh (+81% YoY).
- Robotaxi: Bay Area ride-hailing pilot launched; service expanded in Austin; public iOS app available in U.S. and Canada.
- AI Compute: Training capacity reached 81,000 H100-equivalent GPUs for autonomy and FSD development.
Quarter Highlights
- Record global deliveries and record energy-storage deployments.
- Introduced Model 3 and Model Y Standard in U.S. (starting $36,990 and $39,990) following EV tax-credit expiration.
- Model YL (three-row) launched in China; record sales in South Korea and Southeast Asia.
- Deployed FSD v14 (Supervised), integrating elements of the Robotaxi model and improved obstacle handling.
- Began commercial Robotaxi ride-hailing in the Bay Area and expanded testing in Austin.
- Released Robotaxi iOS app nationwide for waitlist access.
- Energy business achieved record $1.1 B gross profit from Megapack and Powerwall growth.
- Free cash flow and liquidity hit record levels from operational discipline and lower capex ($2.25 B).
CEO Statement & Outlook
Tesla said it remains focused on scaling hardware while developing AI-driven services. Management cited uncertainty from global trade and tariff shifts but stated liquidity is sufficient to fund its roadmap.
Cybercab, Tesla Semi, and Megapack 3 are on track for volume production in 2026.
Initial Optimus robot production lines are being installed.
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Revenue | $28.1 B | $25.2 B | +12% |
| Gross Profit | $5.05 B | $5.00 B | +1% |
| Operating Income | $1.62 B | $2.72 B | −40% |
| Operating Margin | 5.8% | 10.8% | −501 bps |
| GAAP Net Income | $1.37 B | $2.17 B | −37% |
| Non-GAAP Net Income | $1.77 B | $2.51 B | −29% |
| GAAP EPS | $0.39 | $0.62 | −37% |
| Non-GAAP EPS | $0.50 | $0.72 | −31% |
| Free Cash Flow | $3.99 B | $2.74 B | +46% |
Capital Position
No new share repurchase or dividend program announced.
Cash and investments rose to a record $41.6 B, reinforcing financial capacity for AI and autonomy investment.
Key Takeaways
- Revenue and cash flow hit records, but margins compressed under higher operating costs, tariffs, and model mix.
- Energy and services segments outperformed, offsetting weaker automotive profitability.
- Robotaxi program entered limited commercial testing, marking a shift from development to real-world operations.
- AI infrastructure expansion signals continued investment toward autonomy and fleet-based software revenue.
- Liquidity and free cash flow provide Tesla with substantial flexibility amid a weaker margin environment.