July 24, 2025 — Tesla Inc. (NASDAQ: TSLA) reported second-quarter earnings that fell short of Wall Street expectations, sending TSLA stock lower in after-hours trading on Wednesday. The Tesla earnings report highlighted a drop in profitability as the electric vehicle (EV) giant navigates a transitional period marked by new product rollouts, factory retooling, and increasing global competition.
Tesla reported Q2 2025 revenue of $25.5 billion, narrowly missing analysts’ consensus estimate of $25.6 billion. Adjusted earnings per share came in at $0.52, significantly lower than the $0.60 anticipated by analysts. Despite posting a modest 4% year-over-year increase in revenue, Tesla’s margins declined due to ongoing price cuts, higher R&D spending, and early-stage investments in artificial intelligence and robotics.
During the Tesla earnings call, CEO Elon Musk acknowledged the company is entering a challenging period, stating, “There may be a few rough quarters ahead as we ramp up next-generation vehicle production and optimize our factory footprint.” Musk added that while short-term headwinds may weigh on Tesla stock, long-term growth prospects remain strong due to innovations in autonomy, energy storage, and AI.
The Tesla earnings date had been closely watched by investors hoping for signs of margin recovery and updates on the highly anticipated robotaxi platform. However, the absence of concrete timelines on these initiatives added to investor concerns.
Shares of TSLA stock fell over 6% in after-hours trading, reflecting investor disappointment in the Tesla stock earnings report. As of the latest update, the Tesla stock price hovered around $225, down from its $240 close before the earnings announcement.
Key highlights from the Tesla earnings report include:
- Revenue: $25.5 billion (vs. $25.6 billion expected)
- Adjusted EPS: $0.52 (vs. $0.60 expected)
- Automotive gross margin: 16.1%, down from 18.2% in the prior quarter
- CapEx: Increased to support Dojo supercomputer development and Gen 3 vehicle tooling
- Cybertruck deliveries: Slower than projected, with ongoing production scaling challenges
Despite the mixed quarter, Musk reaffirmed Tesla’s long-term vision, emphasizing the importance of building out Tesla’s full self-driving (FSD) capabilities, accelerating energy solutions, and leading the AI-driven robotics revolution. “TSLA is becoming more than just a car company,” Musk noted. “We are laying the groundwork to be at the forefront of multiple industries.”
The market will be watching closely in the coming months for updates on Tesla’s next-generation compact EV platform and the rollout of its autonomous ride-hailing network, both of which are expected to be major drivers of future growth.
With the TSLA stock earnings now public, analysts are revisiting their outlooks amid a challenging macroeconomic environment and growing pressure on margins. Investors are advised to monitor upcoming developments and potential guidance revisions as Tesla continues to innovate amid short-term turbulence.