Tesla Reports Q2 Earnings: Revenue Down 12%, Earnings Per Share Miss Estimate

Tesla reported Q2 revenue of $22.5 billion, down 12% YoY, and earnings per share of 40 cents, missing the consensus estimate of 42 cents. The company attributed the decline to lower deliveries, regulatory credit revenue, and average selling prices. Tesla also highlighted the launch of its Robotaxi service and plans for new models in 2025-2026. The stock is down 0.3% in after-hours trading.

Tesla (TSLA) reported a 12% year-over-year (YoY) decline in revenue to $22.5 billion for the second quarter of 2025, falling short of the consensus estimate of $22.74 billion. The company's earnings per share (EPS) came in at 40 cents, missing the expected 42 cents. The decline in revenue was attributed to lower vehicle deliveries, reduced regulatory credit revenue, and a decrease in average selling prices. Despite these challenges, Tesla highlighted the launch of its Robotaxi service in Austin, Texas, and plans for new models, including a more affordable vehicle, slated for production in the second half of 2025.

In a statement, Tesla said, "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025." The company also mentioned that its purpose-built robotaxi is still scheduled for volume production starting in 2026. The stock was volatile in after-hours trading, down 0.3% following the earnings report [1].

The Q2 2025 earnings report comes at a time when the broader market is surging, with the S&P 500 (^GSPC) and Nasdaq (^IXIC) reaching new highs. However, Tesla faces several headwinds, including declining sales, intensifying competition, and CEO Elon Musk's political activities. The company's global vehicle deliveries fell 13.5% YoY to 384,122 units, with weakness in key regions like Europe and a decline in US sales [2].

Investors will closely watch for updates on Tesla's autonomy efforts, Q3 margin, and delivery guidance, as well as progress in key markets such as China and Europe. Without clear momentum in these areas, Tesla's stock may struggle to maintain its position [3].

References:
[1] https://finance.yahoo.com/news/tesla-misses-on-q2-earnings-but-says-more-affordable-model-planned-for-2025-production-201633342.html
[2] https://finbold.com/ai-predicts-tesla-stock-price-after-q2-earnings-report/
[3] https://globelynews.com/business/tesla-q2-2025-earnings/