Tesla Reports Q2 2025 Revenue of $22.50 Billion, Net Income Declines 16%

Tesla, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $22.50 billion, a decrease of $3.00 billion or 12% compared to the same period in 2024. For the first half of 2025, revenues totaled $41.83 billion, down $4.97 billion or 11% year-over-year. The company's net income attributable to common stockholders was $1.17 billion for the quarter, a decline of $228 million or 16% from the previous year, and $1.58 billion for the six months, down $1.21 billion or 43%. The decrease in revenue was primarily attributed to lower automotive sales, which fell by 15% in the second quarter and 18% in the first half, driven by reduced deliveries of the Model 3 and Model Y.

In terms of operational metrics, Tesla produced approximately 773,000 vehicles and delivered around 721,000 vehicles through the second quarter of 2025. The company also launched its Robotaxi service in Austin in June 2025, marking a significant step in its strategy to leverage artificial intelligence and scalable mobility infrastructure. The energy generation and storage segment saw revenues of $2.79 billion in the second quarter, a decrease of 7% year-over-year, but an increase of 19% for the first half, reflecting strong demand for Powerwall and Megapack products.

Tesla's balance sheet showed total assets of $128.57 billion as of June 30, 2025, up from $122.07 billion at the end of 2024. Cash and cash equivalents decreased slightly to $15.59 billion, while short-term investments increased to $21.20 billion. The company reported a total debt of $6.98 billion, with $1.97 billion classified as current. Operating cash flow for the first half of 2025 was $4.70 billion, an increase from $3.85 billion in the same period last year, indicating improved cash generation from operations.

The company has been focusing on cost reduction and operational efficiencies, with research and development expenses rising by 48% in the second quarter to $1.59 billion, reflecting increased investment in AI and other technologies. Tesla's gross margin for automotive sales decreased to 17.2% from 18.5% year-over-year, primarily due to lower average selling prices and a decrease in regulatory credits revenue. The energy generation and storage segment, however, saw an increase in gross margin to 30.3%, up from 24.6% in the previous year.

Looking ahead, Tesla anticipates continued challenges from market conditions, including inflationary pressures and regulatory changes that may impact demand and production costs. The company expects capital expenditures to exceed $9 billion in 2025 as it invests in new products, manufacturing capacity, and infrastructure. Tesla remains committed to its long-term growth strategy, focusing on expanding its product offerings and enhancing its operational capabilities to maintain competitiveness in the evolving automotive and energy markets.