In Q2 CY2025, Tesla (NASDAQ:TSLA) reported a revenue of $22.5 billion, falling short of market expectations. Non-GAAP profit was $0.40 per share, in line with estimates. Vehicles delivered were 384,122, missing analyst estimates. Automotive revenue beat estimates while Energy revenue missed. Tesla’s long-term growth has been strong, with revenue tripling in five years. However, recent performance shows a slowdown in demand. The company’s gross margin fell to 17.2% this quarter. Overall, Tesla’s Q2 results were weaker, leading to a 3.7% stock drop post-earnings.

Tesla’s primary revenue stream is from automobile sales, with 76% coming from EVs. The company has shifted focus to mass-market vehicles like the Model 3 and Model Y, impacting average vehicle prices. Tesla passed cost-saving benefits to customers through price reductions. In Q2, vehicle sales decreased by 13.5% year on year, with an average vehicle price of $43,374. Tesla’s gross margin for Automotive fell from 24% to 17.2% this quarter due to price cuts.

Tesla’s Q2 results were disappointing, with revenue misses and underperformance in Energy. The stock dropped 3.7% post-earnings. Long-term fundamentals and valuation should be considered when deciding on investing in Tesla.

Read more at Stockstory.org would not be associated with any specific media company name as it is an independent website for stock market analysis and news.: Tesla (NASDAQ:TSLA) Misses Q2 Sales Targets