Tesla Reports Q1 2025 Financial Results: Revenue Down 9% as Model Y Production Updates Impact Deliveries

Rhea-AI Summary

Tesla (TSLA) reported Q1 2025 financial results showing a 9% year-over-year revenue decline to $19.3 billion, primarily due to Model Y production line changeovers across all factories. Vehicle deliveries dropped 13% to 336,681 units, while GAAP operating income fell 66% to $399 million.

Key highlights include:

• Energy Generation and Storage revenue grew 67% to $2.73 billion
• Storage deployments increased 154% to 10.4 GWh
• Cash position remained strong at $37.0 billion
• Free cash flow rose 126% to $664 million

Notable developments include the launch of Long Range Cybertruck with 362-mile range, FSD (Supervised) introduction in China, and confirmation of new affordable models starting production in H1 2025. The company's Cybercab robotaxi is scheduled for volume production in 2026, with a pilot launch in Austin by June 2025.

Positive

• Energy storage revenue surged 67% to $2.73 billion
• Storage deployments grew 154% to 10.4 GWh
• Free cash flow increased 126% to $664 million
• Strong cash position of $37.0 billion
• Shanghai Model Y factory achieved fastest production ramp ever
• FSD expansion to China market

Negative

• Revenue declined 9% year-over-year to $19.3 billion
• Vehicle deliveries dropped 13% to 336,681 units
• Operating income fell 66% to $399 million
• Operating margin decreased to 2.1%
• Net income declined 71% year-over-year
• Total vehicle production decreased 16%
• Uncertainty around trade policy impacts on supply chains

Austin, USA — April 22, 2025

Tesla, Inc. announced financial results for the first quarter of 2025, reporting total revenue of $19.3 billion, a 9% year-over-year decrease, primarily impacted by planned production line changeovers for its updated Model Y across all four vehicle factories.

Automotive revenues contributed $14.0 billion, down 20% from Q1 2024, while energy generation and storage revenue grew 67% to $2.7 billion. Services and other revenue increased 15% to $2.6 billion.

The company posted GAAP operating income of $399 million, falling 66% year-over-year, with operating margin dropping to 2.1% from 5.5% in Q1 2024. GAAP net income attributable to common stockholders reached $409 million, a 71% decline, resulting in diluted earnings per share of $0.12. Non-GAAP net income was $934 million, down 39%, with non-GAAP EPS at $0.27.

Tesla cited several factors impacting profitability:

• Reduced vehicle average selling price due to mix and sales incentives
• Decline in vehicle deliveries, partly due to the Model Y update
• A negative foreign exchange impact of $0.3 billion
• Increased operating expenses driven by AI and other R&D projects

Vehicle deliveries decreased 13% to 336,681 units, with production declining 16% to 362,615 vehicles. Tesla highlighted that the new Shanghai Model Y factory fully ramped production in six weeks, which the company called its quickest vehicle ramp ever.

Energy storage deployments grew 154% year-over-year to 10.4 GWh. The company achieved a fourth sequential record for Powerwall deployments, crossing 1 GWh for the first time. The Megafactory in Shanghai produced over 100 Megapacks during the quarter, which are en-route to customers.

Tesla maintained a strong financial position with $37.0 billion in cash, cash equivalents and investments, a sequential increase of $0.4 billion. Free cash flow for the quarter was $664 million, up 126% year-over-year.

In AI and autonomy advancements, Tesla launched FSD (Supervised) in China, its first market outside North America. Model 3, Model Y, and Cybertruck now drive autonomously from production lines to outbound lots at Fremont and Gigafactory Texas facilities. The company remains on track for a pilot launch of its Robotaxi service in Austin by June 2025 and builds of its Optimus robot on the Fremont pilot line in 2025.

Tesla launched an IRA-compliant 4680 battery cell, making the Cybertruck eligible for the $7,500 consumer tax credit. In April, the company introduced the Long Range Cybertruck with 362 miles of range. Tesla's lithium refining and cathode production plants are on track to start production in 2025.

Looking ahead, Tesla confirmed plans for new vehicles, including more affordable models, remain on track for production start in the first half of 2025. These will utilize aspects of both current and next-generation platforms on existing manufacturing lines. This approach is expected to result in less cost reduction than previously anticipated but enables more capital-efficient volume growth. The Cybercab Robotaxi is scheduled for volume production starting in 2026.

In its outlook, Tesla cited uncertainty around trade policy impacts on automotive and energy supply chains. The company stated it will revisit its 2025 guidance in its Q2 update.

About Tesla: Tesla's mission is to accelerate the world's transition to sustainable energy through electric vehicles, battery storage, and solar power generation. The company operates vehicle production facilities in the United States, China, and Germany.

Source: Tesla Investor Relations

FAQ

What caused Tesla's (TSLA) revenue decline in Q1 2025?

Tesla's Q1 2025 revenue declined 9% year-over-year due to temporary production disruptions from Model Y production line changeovers across all four vehicle factories.

How many vehicles did Tesla (TSLA) deliver in Q1 2025?

Tesla delivered 336,681 vehicles in Q1 2025, a 13% decrease year-over-year, with Model 3/Y deliveries at 323,800 units and other models at 12,881 units.

What is Tesla's (TSLA) progress in energy storage for Q1 2025?

Tesla's Energy Generation and Storage revenue grew 67% to $2.73 billion, with storage deployments increasing 154% to 10.4 GWh and record Powerwall deployments exceeding 1 GWh.

When will Tesla (TSLA) start production of its new affordable models?

Tesla confirmed plans for new affordable models to begin production in the first half of 2025.

What is Tesla's (TSLA) timeline for Cybercab robotaxi launch?

Tesla plans to launch Cybercab pilot program in Austin by June 2025, with volume production scheduled to begin in 2026.