Tesla Q2 2025 Update

Summary

Q2 2025 marked a significant transition for Tesla, moving beyond its leadership in electric vehicles and renewable energy to also become a leader in AI, robotics, and related services. The company launched its Robotaxi service in Austin, utilizing a camera-only architecture with neural networks trained on data from its global fleet. This approach aims to continuously improve safety, scale the network, and enhance profitability.

Tesla is also expanding its vehicle offerings with the first builds of a more affordable model in June, with volume production planned for the second half of 2025. Development of the Semi and Cybercab is also progressing, with volume production slated for 2026.

The Energy business is highlighted as increasingly critical for economic growth and the development of AI-enabled products. Tesla's Megapack product aids in increasing the utilization of existing generation and transmission capacity, making the electric grid more efficient. When paired with solar PV, Megapack offers a cost-competitive alternative to traditional fossil fuel generation assets and can be deployed faster.

Despite a challenging macroeconomic environment, Tesla continues to make high-value investments in CapEx and R&D, maintaining a strong balance sheet. The company's priorities include delivering affordable and compelling autonomy-capable models, growing the Energy business, and advancing robotics efforts.

Highlights

Profitability

• $0.9B GAAP operating income
• $1.2B GAAP net income
• $1.4B non-GAAP net income

Cash

• Operating cash flow of $2.5B
• Free cash flow of $0.1B
• $0.2B decrease in cash and investments to $36.8B

Operations

• Launched Robotaxi service in Austin
• Delivered first customer vehicle fully autonomously
• Deployed first Megapacks from Megafactory Shanghai

Financial Summary

Operational Summary

Automotive

Tesla continues to prepare for the launch of additional models, with its entire lineup enhanced by recent updates. The company's focus on supply chain robustness has resulted in a resilient vehicle capacity base, despite trade and policy uncertainties. Tesla produced its 8-millionth vehicle in June.

US: California, Nevada and Texas

Record test drives were observed in North America, a 20% increase sequentially. Tesla is maximizing customer engagement with its vehicles, introducing the Long Range RWD Model Y with 357 miles of range starting under $45k.

APAC: Shanghai

Gigafactory Shanghai serves as a key export hub, supporting market expansion. Record delivery volumes were achieved in South Korea, Malaysia, the Philippines, and Singapore. The Model Y was launched in India, and the refreshed Model 3 received a 5-star Overall Safety Rating from ANCAP. Preparations are underway for a broader release of FSD (Supervised) in China.

Europe and the Middle East: Berlin-Brandenburg

Model Y has been the best-selling vehicle in Norway YTD and in Türkiye, Netherlands, Switzerland, and Austria. The refreshed Model 3 achieved a 5-star Overall Safety Rating from EuroNCAP, making it the safest car in Europe. FSD (Supervised) is planned for release in Europe this year.

Current Installed Annual Vehicle Capacity:

Note: Installed capacity does not equal current production rate and may be limited by various factors.

Market share of Tesla vehicles by region (TTM):

A chart shows market share trends for Tesla vehicles in US/Canada, Europe, and China from Q3 2019 to Q2 2025.

Core Technology

Artificial Intelligence Software and Hardware

The Robotaxi service was launched in Austin with a safety rider. Efforts are focused on improving and expanding the service, with plans for additional launches in other U.S. cities. Tesla achieved the world's first autonomous delivery to a customer, with a Model Y driving itself from the factory to the owner's home. Al training compute was expanded with an additional 16k H200 GPUs at Gigafactory Texas.

Cumulative miles driven with FSD (Supervised)¹ (billions):

A line graph illustrates the cumulative miles driven with FSD (Supervised) from Sep-2021 to Jun-2025, showing a significant increase in miles driven with V12 and beyond compared to V11 and before.

Vehicle and Other Software

Tesla vehicles continuously improve through software updates, offering features like enhanced security, convenience, and entertainment. The Robotaxi mobile app was launched, providing a seamless customer experience for ride requests, vehicle tracking, and payments.

Battery, Powertrain and Manufacturing

Lithium refining and cathode production plants are on track to begin production in 2025. Domestic production of LFP cells for energy storage products is also planned to commence later this year.

Tesla AI training capacity ramp through end of September (H100 equivalent GPUs):

A bar chart shows the ramp-up of Tesla's AI training capacity using H100 equivalent GPUs from Jun-2021 to Sep-2025, indicating both existing and future planned capacity.

Energy & Services and Other

Energy storage deployments continue to grow, with expanded capacity for Megapack and Powerwall. Services and Other, which supports vehicle sales, is also growing globally.

Energy Generation and Storage

Energy storage deployments increased on a trailing twelve-month basis, with record Powerwall deployments for the fifth consecutive quarter. Gross profit increased sequentially and year-over-year, reaching $846 million. Megapacks are being deployed from Megafactory Shanghai, and regionalizing energy storage manufacturing is crucial for meeting global demand.

Energy and Services and Other gross profit (TTM; $M):

A bar chart shows the quarterly gross profit for Energy and Services and Other from Q3 2018 to Q2 2025.

Services and Other

Services and Other gross profit grew 64% sequentially, driven by improved Supercharging gross profit. Over 2,900 net new Supercharging stalls were added, increasing the network by 18% year-over-year. AI agents are being integrated to assist customers, reduce service wait times, and improve turnaround times.

Energy Storage deployments (TTM; GWh):

A bar chart illustrates the quarterly energy storage deployments from Q3 2018 to Q2 2025.

Outlook

Volume

Predicting the impact of global trade and fiscal policies on automotive and energy supply chains, cost structures, and demand is challenging. Actual results will depend on various factors, including the macroeconomic environment, the pace of autonomy development, and production ramp-ups.

Cash

Tesla has sufficient liquidity to fund its product roadmap, capacity expansion plans, and other expenses, while maintaining a strong balance sheet during this uncertain period.

Profit

Innovations in manufacturing and operations are expected to reduce costs. Over time, hardware-related profits are anticipated to be complemented by accelerated AI, software, and fleet-based profits.

Product

Tesla remains focused on prudently growing vehicle volumes efficiently, utilizing existing production capacity before building new lines. New vehicle launches planned for 2025 are on track, including an affordable model in 1H25. The purpose-built Robotaxi product, Cybercab, will utilize a revolutionary manufacturing strategy, with volume production scheduled for 2026.

Key Metrics Quarterly

Vehicle Deliveries (millions of units):

A bar chart displays vehicle deliveries from Q2-2022 to Q2-2025.

Operating Cash Flow ($B) and Free Cash Flow ($B):

A bar chart shows operating cash flow and free cash flow from Q2-2022 to Q2-2025.

Net Income ($B) and Adjusted EBITDA ($B):

A bar chart illustrates net income and adjusted EBITDA from Q2-2022 to Q2-2025.

Key Metrics Trailing 12 Months (TTM)

Vehicle Deliveries (millions of units):

A bar chart shows vehicle deliveries on a trailing twelve-month basis from 3Q-2022 to 2Q-2025.

Operating Cash Flow ($B) and Free Cash Flow ($B):

A bar chart displays operating cash flow and free cash flow on a trailing twelve-month basis from 3Q-2022 to 2Q-2025.

Net Income ($B) and Adjusted EBITDA ($B):

A bar chart illustrates net income and adjusted EBITDA on a trailing twelve-month basis from 3Q-2022 to 2Q-2025.

Financial Statements

Detailed financial statements, including the Statement of Operations, Balance Sheet, and Statement of Cash Flows, are provided for the periods ending Q2-2024 through Q2-2025.

Statement of Operations

Balance Sheet

The Balance Sheet provides a snapshot of Tesla's assets, liabilities, and equity as of June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, and June 30, 2025.

Statement of Cash Flows

The Statement of Cash Flows details Tesla's cash generated and used in operating, investing, and financing activities for the periods ending Q2-2024 through Q2-2025.

Reconciliation of GAAP to Non-GAAP Financial Information

This section provides reconciliations between GAAP and non-GAAP financial measures, including Net Income, EPS, and Adjusted EBITDA, to offer a more comprehensive view of Tesla's financial performance.

Additional Information

Webcast Information

Tesla will host a live webcast of its second quarter 2025 financial results conference call on July 23, 2025. The webcast will be available for replay.

Certain Terms

Definitions for terms such as vehicle deliveries, energy product deployment volume, non-GAAP net income, Adjusted EBITDA, and free cash flow are provided.

Non-GAAP Financial Information

Consolidated financial information is presented in accordance with GAAP and on a non-GAAP basis to supplement results. Non-GAAP measures include non-GAAP net income, non-GAAP diluted EPS, Adjusted EBITDA, and free cash flow. These measures are used internally by management and are provided to investors for a better understanding of Tesla's performance.

Forward-Looking Statements

This section contains forward-looking statements regarding Tesla's development, strategy, production, capacity, demand, costs, pricing, profitability, investments, deliveries, and other aspects of its business. These statements are based on assumptions and current expectations and involve risks and uncertainties that could cause actual results to differ materially.