Tesla (TSLA) released its financial results and shareholders’ letter for the second quarter (Q2) 2025 after market close today.
We are updating this post with all the details from the financial results, shareholders’ letter, and the conference call later tonight. Refresh for the latest information.
Tesla Q2 2025 earnings expectations
As we reported in our Tesla Q2 2025 earnings preview yesterday, the Wall Street consensus for this quarter was $22.279 billion in revenue and earnings of $0.40 per share.
The expectations had been significantly downgraded over the last month, as analysts were surprised by Tesla’s announcement of much lower deliveries than expected in the first quarter.
How did Tesla do compared to expectations?
Tesla Q2 2025 financial results
After the market closed today, Tesla released its financial results for the first quarter and confirmed that it delivered on expectations with earnings of $0.40 per share (non-GAAP), and it exceeded revenue expectations with $22.496 billion during the last quarter.
Tesla’s earnings per share are down 23% year-over-year amid a booming EV market.
Operating income decreased 42% year-over-year to now less than $1 billion, and almost half of it came from regulatory credits.
Top comment by AbhorViolence
Within 2 quarters the company is on track for negative margins and a quarterly loss.
Yet it's priced like it's a startup with the most incredible growth potential imaginable. 180 P/E, vs most actually profitable, actually growing companies with a PE in the 30 range. So a drop to one sixth of the current price, to around $55 a share would only get it in line with the rest. But it's at massively negative growth, on track for bankruptcy, which should afford it a much lower valuation than that.
I've been generously and ironically humorously giving it a price target of $69. But more realistic would be around $40 based on their 37 billion in cash and other assets.
Tesla’s cash on hand has decreased this quarter for the first time in years. The company lost approximately $200 million of its substantial war chest, now standing at $36.8 billion.
We will be posting our follow-up posts here about the earnings and conference call to expand on the most important points (refresh the page to see the most recent posts):
- Tesla (TSLA) all but admits electric car sales growth is gone, gives up on guidance
- Superchargers are the only part of Tesla’s business seeing growth right now
- Tesla claims it produced the first builds of its ‘new affordable’ electric car models
- Elon Musk with a straight face: Tesla Robotaxi will cover half of US population by end of the year
Here’s Tesla’s Q2 2025 shareholder presentation in full:
Here’s Tesla’s conference call for the Q2 2025 results:
FTC: We use income earning auto affiliate links. More.
Comments