01—Abstract
Summary
Summary of the 10-Q filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.
Tesla, Inc. (TSLA) reported its first quarter 2025 results, demonstrating resilience in its core automotive business despite a significant year-over-year revenue decline.
Total revenues stood at $19.3 billiona, down 9% from Q1 2024, primarily driven by a 21% decrease in automotive sales revenue, largely attributed to production line changes for the new Model Y and lower average selling prices. However, the company saw substantial growth in its Energy Generation and Storage segment, which surged by 67%, and a robust 15% increase in Services and other revenues, highlighting diversification. Despite the revenue headwinds, Tesla managed to improve its operating cash flow significantly, reporting $2.16 billion compared to $242 million in the prior year's quarter, indicating strong operational efficiency improvements.
Net income attributable to common stockholders decreased to $409 millionb ($0.12 diluted EPS) from $1.39 billion ($0.41 diluted EPS) in Q1 2024, impacted by the revenue decline and increased R&D spending focused on AI. The company ended the quarter with a strong liquidity position, with $16.35 billion in cash and cash equivalents and $20.64 billion in short-term investments, and anticipates capital expenditures to exceed $10 billion for 2025.
02—Key points
Key Highlights
- Total revenues decreased by 9% year-over-year to $19.3 billion, primarily due to a 21% drop in automotive sales revenue, influenced by Model Y production line changes and lower average selling prices.
- The Energy Generation and Storage segment revenue saw significant growth, increasing by 67% year-over-year, indicating strong demand and expansion in this sector.
- Services and other revenue increased by 15%, showing continued growth in Tesla's after-sales and service offerings.
- Operating cash flow dramatically improved, jumping to $2.16 billion from $242 million in the prior year's quarter, reflecting enhanced operational efficiency.
- Net income attributable to common stockholders declined to $409 million ($0.12 EPS) from $1.39 billion ($0.41 EPS) in Q1 2024, impacted by lower revenues and increased R&D expenses.
- Research and Development expenses increased by 22% to $1.41 billion, with a strong focus on AI programs and related costs.
- The company maintains a robust liquidity position with $16.35 billion in cash and cash equivalents and $20.64 billion in short-term investments as of March 31, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Tesla, Inc. kept $0.02.
- Revenue$19.34B100.0%
- Cost of revenue−$16.18B83.7%
- Gross profit$3.15B16.3%
- Operating costs−$2.75B14.2%
- Operating income$399.0M2.1%
- Interest, other & tax$10.0M0.1%
- Net income$409.0M2.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 23, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $19.34B$21.30B | −9.2% |
| Cost of Revenue | $16.18B$17.61B | −8.1% |
| Gross Profit | $3.15B$3.70B | −14.7% |
| R&D Expenses | $1.41B$1.15B | +22.4% |
| SG&A Expenses | $1.25B$1.37B | −9.0% |
| Operating Expenses | $2.75B$2.52B | +9.1% |
| Operating Income | $399.00M$1.17B | −65.9% |
| Net Income | $409.00M$1.39B | −70.6% |
| EPS (Basic) | $0.13$0.45 | −71.1% |
| EPS (Diluted) | $0.12$0.41 | −70.7% |
| Shares Outstanding (Basic) | 3.22B3.19B | +1.0% |
| Shares Outstanding (Diluted) | 3.52B3.48B | +1.1% |
05—Questions
Frequently Asked Questions
What is the primary driver behind the year-over-year decline in Tesla's revenue?
The primary driver behind the 9% year-over-year revenue decline to $19.3 billion was a significant 21% decrease in automotive sales revenue. This was attributed to production line changes for the new Model Y, a lower average selling price per unit due to sales mix and customer incentives, and the strengthening of the US dollar against foreign currencies.
How did Tesla's Energy Generation and Storage segment perform in Q1 2025?
Tesla's Energy Generation and Storage segment demonstrated strong performance, with revenues increasing by 67% year-over-year to $2.73 billion. This growth was primarily driven by increased deployments of Megapack and Powerwall products.
What is the outlook for Tesla's capital expenditures in 2025?
Tesla expects its capital expenditures to exceed $10 billion for the full year 2025. These expenditures will support ongoing projects globally, including AI-related investments, factory expansions, new product development, and infrastructure growth.
How did Tesla's operating cash flow change in the first quarter of 2025?
Tesla experienced a significant improvement in operating cash flow, which increased to $2.16 billion in the first quarter of 2025, compared to $242 million in the same period of 2024. This substantial increase reflects enhanced operational efficiency.
06—Continue