Shares of US electric vehicle maker Tesla fell over 8% to hit a low of $303 on Nasdaq in early trade on Thursday following the company's lackluster Q2 results. Company's total automotive revenues fell 16% to $16,661 million in the April-June quarter versus $19,878 million reported in the year ago period.
Tesla shares fell amid significant volumes with over 100 million shares (10.8 crore) shares changing hands.
Tesla's net income attributable to common stockholders was also down 16% in the quarter to $1,172 million compared to $1,400 crore in the corresponding quarter of the last financial year.
The company's total revenues in Q2-2025 were reported at $22,496 million, down by 12% over $25,500 million reported in the year ago period.
The company had announced its earnings on Wednesday.
The operating expenses stood at $2,955 million, down 1% over 2,973 in the year ago period while the operating margin was reported at 4.1%, which was a fall of 219 bps compared to 6.3% in Q2-2024.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at $3,401 million, down by 7% over $3,674 million in the year ago period.
Adjusted EBITDA margin stood at 15.1%, up by 71 bps over 14.4% in Q2-2024.
Total revenue decreased 12% YoY to $22.5B and impacted by the decline in vehicle deliveries, lower regulatory credit revenue, reduced vehicle average selling price (ASP) (excl. FX impact1), due to mix and decline in Energy Generation and Storage revenue due to lower ASP, the company filing to the exchange said.
Quarter-end cash, cash equivalents and investments was $36.8B. The sequential decrease of $0.2B was primarily the result of changes in restricted cash and cash used in financing activities partially offset by free cash flow.
It was Elon Musk company's worst quarterly decline in sales in over a decade, a Reuters report said, adding that Tesla's second-quarter profit missed analysts' expectations, yet its profit margin on making cars was not as bad as many had feared.
On a conference call, chief executive Musk said U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year.
Management commentary
"While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware related profits to be accompanied by an acceleration of AI, software and fleet-based profits," a company statement said.
On product, Tesla said that its focus remains on prudently growing its vehicle volumes in a capex efficient manner by using our existing vehicle production capacity before building new lines. Plans for new vehicles that will launch in 2025 remain on track, including initial production of a more affordable model in 1H25.
"Our purpose-built Robotaxi product – Cybercab – will continue to pursue a revolutionary “unboxed” manufacturing strategy and is scheduled for volume production starting in 2026," the filing said.
Tesla shares fell amid significant volumes with over 100 million shares (10.8 crore) shares changing hands.
Tesla's net income attributable to common stockholders was also down 16% in the quarter to $1,172 million compared to $1,400 crore in the corresponding quarter of the last financial year.
The company's total revenues in Q2-2025 were reported at $22,496 million, down by 12% over $25,500 million reported in the year ago period.
The company had announced its earnings on Wednesday.
The operating expenses stood at $2,955 million, down 1% over 2,973 in the year ago period while the operating margin was reported at 4.1%, which was a fall of 219 bps compared to 6.3% in Q2-2024.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at $3,401 million, down by 7% over $3,674 million in the year ago period.
Adjusted EBITDA margin stood at 15.1%, up by 71 bps over 14.4% in Q2-2024.
Total revenue decreased 12% YoY to $22.5B and impacted by the decline in vehicle deliveries, lower regulatory credit revenue, reduced vehicle average selling price (ASP) (excl. FX impact1), due to mix and decline in Energy Generation and Storage revenue due to lower ASP, the company filing to the exchange said.
Quarter-end cash, cash equivalents and investments was $36.8B. The sequential decrease of $0.2B was primarily the result of changes in restricted cash and cash used in financing activities partially offset by free cash flow.
It was Elon Musk company's worst quarterly decline in sales in over a decade, a Reuters report said, adding that Tesla's second-quarter profit missed analysts' expectations, yet its profit margin on making cars was not as bad as many had feared.
On a conference call, chief executive Musk said U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year.
Management commentary
"While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware related profits to be accompanied by an acceleration of AI, software and fleet-based profits," a company statement said.
On product, Tesla said that its focus remains on prudently growing its vehicle volumes in a capex efficient manner by using our existing vehicle production capacity before building new lines. Plans for new vehicles that will launch in 2025 remain on track, including initial production of a more affordable model in 1H25.
"Our purpose-built Robotaxi product – Cybercab – will continue to pursue a revolutionary “unboxed” manufacturing strategy and is scheduled for volume production starting in 2026," the filing said.
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