Tesla Q2 Earnings Surpass Expectations, Revenues Decline Y/Y

Tesla TSLA reported second-quarter 2025 earnings per share of 40 cents, which topped the Zacks Consensus Estimate of 39 cents but decreased from the year-ago figure of 52 cents. Total revenues of $22.5 billion surpassed the consensus mark of $22.4 billion but declined 12% year over year.  Tesla, Inc. Price, Consensus and EPS Surprise Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. QuoteKey TakeawaysTesla’s second-quarter production totaled 410,244 units (396,835 Model 3/Y and 13,409 other models), which declined 0.1% year over year and missed our estimate of 453,081 units. The company delivered 384,122 vehicles, which fell 13.5% year over year and lagged our estimate of 420,079 units. The Model 3/Y registered deliveries of 373,728 vehicles, which declined 11.5% year over year and fell short of our expectations of 400,574 units.Total automotive revenues of $16.7 billion were down 16% year over year and lagged our estimate of $18.3 billion. The reported figure also included $439 million from the sale of regulatory credits for electric vehicles, which decreased 50.7% year over year. Automotive sales, excluding revenues from leasing and regulatory credits, totaled $15.8 billion, which missed our projection of $17.4 billion on lower-than-expected deliveries. Automotive gross profit (excluding automotive leasing and regulatory credits) came in at $2.2 billion. Automotive gross margin came in at 14.1%, up from 13.9% reported in second-quarter 2024.Tesla’s operating margin declined 219 basis points year over year to 4.1% in the quarter under discussion and lagged our estimate of 4.7%.Energy Generation and Storage revenues came in at $2.8 billion in second-quarter 2025, falling 7% year over year but lagging our estimate of $3 billion. Notably, energy storage deployments came in at 9.6 GWh. Services and Other revenues were $3 billion, up 17% year over year. However, the metric fell short of our estimate of $3.1 billion. Tesla ended second-quarter 2025 with 70,228 Supercharger connectors.FinancialsTesla had cash/cash equivalents/investments of $36.8 billion as of June 30, 2025, compared with $36.5 billion as of Dec. 31, 2024. Long-term debt and finance leases, net of the current portion, totaled $5.2 billion, down from $5.8 billion as of Dec. 31, 2024.Net cash provided by operating activities amounted to $2.5 billion in second-quarter 2025, down from $3.6 billion in the year-ago period. Capital expenditure totaled $2.4 billion in the quarter under review. Tesla generated free cash flow of $146 million during the reported quarter compared with $1.3 billion generated in the second quarter of 2024.Tesla’s Zacks Rank & Key PicksTSLA carries a Zacks Rank #4 (Sell) at present.Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, OPENLANE, Inc. KAR and Ferrari N.V. RACE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales implies year-over-year growth of 94.14%. EPS estimates for 2025 and 2026 have improved 43 cents and 68 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 2.86% and 17.65%, respectively. EPS estimates for fiscal 2025 and 2026 have improved a penny each in the past seven days.The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 12.12%, respectively. EPS estimates for 2025 and 2026 have improved 34 cents and 38 cents, respectively, in the past 30 days.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis Report Ferrari N.V. (RACE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks