Tesla releases Q1 2025 results; -71 % drop in net profit YoY 🔎📌

• Revenue: USD 19.3 bn, ‑9 % YoY (driven mainly by lower Model Y volume and ongoing price incentives)
• Earnings per share (GAAP): USD 0.12 (‑71 % YoY); earnings per share (non‑GAAP): USD 0.27 (‑40 %)
• Operating profit: USD 0.4 bn; operating margin: 2.1 % (‑343 bp YoY), as price/mix pressure and AI R&D spend offset lower raw‑material costs

Tesla shares (TSLA.US) gain 0.50 % in after‑hours trading, despite weaker year‑on‑year results. However, investor hopes are sustained by the company’s optimistic outlook.

Tesla’s first‑quarter report showed a deliberate profitability reset as it prepares for the next product cycle. Revenue fell 9 % YoY to USD 19.3 bn, GAAP EPS dropped to USD 0.12, and operating margin shrank to 2.1 %. The results were caused by lower Model Y volumes and continued price discounts, which ultimately outweighed material savings. On the positive side, cash flow returned to positive territory (USD 0.7 bn). Company liquidity is now at a record level (+USD 37 bn) ahead of planned launches in the coming months.

• Key catalysts: Robotaxi pilot in June 2025, FSD approval in Europe and launch of cheaper vehicles in H1 2025.

Competitive pressures in the EV market are reflected in the tech giant’s results. Automotive revenue is currently down 20 %, while the Energy Generation & Storage segment gained significance, rising 67 % YoY to USD 2.7 bn.

• Energy & AI are gaining importance: storage revenue +67 % and rising margins point to Tesla’s second profit engine, though heavy AI spending is currently weighing on SG&A/R&D.
• Energy storage deployed: 10.4 GWh (↑ 154 % YoY) — fourth consecutive TTM record.
• Vehicle production: 362 615 units (‑16 % YoY)
• Deliveries: 336 681 units (‑13 % YoY); Model 3/Y = 96 % of total.
• Supercharger network: 67 316 charging points (+17 % YoY).

Vehicle deliveries fell 13 % to 337 k units. Yet investor hopes are decidedly upheld by the vision of FSD technology and Robotaxi. FSD (Supervised) is already operating in China, and the fleet’s cumulative mileage has surpassed 4 bn miles.
As a curiosity, Tesla reported that new Cybertrucks drive autonomously off the line to logistics yards in the USA. Meanwhile, the Robotaxi “Cybercab” is to enter serial production in 2026, with a pilot in Austin by June 2025.

Impact of tariffs on Tesla’s business

Management noted that it will revisit the 2025 outlook in Q2, once the new reality of U.S. trade policy crystallizes. Whether FY‑25 operating margin returns to mid‑single‑digit territory will depend on a rebound in Model Y volume, tariff developments and the pace of energy deployments.

At the same time, management confirmed that new, cheaper models remain on schedule for H1 2025. Tesla also plans to deploy Optimus robots to assist production in its factories starting next year. Overall, management remains optimistic about the company’s prospects and upcoming product launches.

Source: xStation 5