Tesla Q2 2025 Results Highlights, Share Price Update: American EV giant Tesla on Thursday reported a 16 per cent year-on-year fall in revenue for the June quarter–its worst fall in sales in more than a decade. The quarterly top-line contracted for a second straight quarter, and missed market expectations, foreign media reported. Tesla is led by Elon Musk, the world’s richest individual. The Model Y EV maker made headlines recently for opening its first India store.

Tesla Q2 (April-June) Earnings | Key takeaways

Tesla registered revenue of $22.50 billion for the quarter ended June 30, marking a decline of 12 per cent on a year-on-year basis, with auto revenue at $16.7 billion as against $19.9 billion a year ago.

In early July, Tesla reported a 14% year-over-year slide in vehicle deliveries to 384,000 for the second quarter. Deliveries are the closest approximation of EV sales reported by Tesla but aren’t precisely defined in its shareholder communications.

Its net income stood at 1.17 billion or 33 cents per share (EPS attributable to common stockholders), falling sharply from 1.4 billion or 40 cents per share a year ago.

The company’s operating expenses declined about 1.0 per cent to $2,955 million, according to a statement.

Its net cash, provided by operating activities, fell 30 per cent to $2,540 million. It was at $3,612 million last year.

What impacted Tesla’s Q2 revenue

Tesla listed five key factors that impacted its revenue for the quarter:

• Decline in vehicle deliveries

• Lower regulatory credit revenue

• Reduced vehicle average selling price (excluding FX impact) due to mix

• Decline in Energy Generation and Storage revenue due to lower ASP

• Growth in ‘Services and Other’ segment

What impacted Tesla’s profitability in Q2

Tesla’s operating income fell 42 per cent to 0.9 billion, with a 4.1 per cent operating margin. A year ago, its margin was at 6.3 per cent.

The operating profit, according to Tesla, was impacted by the following:

• Lower regulatory credit revenue
• Increase in operating expenses (excluding restructuring and SBC) driven by AI and other R&D projects
• Decline in vehicle deliveries
• Increase in SBC
• Decrease in restructuring charges
• Lower cost per vehicle, due to mix and lower raw materials partially offset by lower fixed cost absorption and an increase in tariffs
• Growth in energy generation and storage gross profit

Tesla keeps producing at same pace but deliveries dwindle by double-digit percentage points

Its production remained largely unchanged at 4,10,244 units in Q2 of 2025, from 4,10,831 units a year ago. However, its deliveries fell 13 per cent to 3,84,122 from 4,43,956 units a year ago.

Tesla shares bear the brunt of Q2 earnings news in Europe, over to Wall Street

Tesla shares faced selling pressure in Europe, falling almost 6.0 per cent. In Frankfurt, the stock was last seen trading down 5.7 per cent, following a five per cent fall on Wall Street the previous day.

Tesla shares are listed on Nasdaq in the US and traded with the symbol TSLA on Wall Street.

However, the stock is also available for trading through cross-border trading platforms in few locations, including Frankfurt.

Tesla shares have lost about 18 per cent of their value in 2025 so far, underperforming the Nasdaq index’s gain of about 9 per cent.

The Tesla stock has fallen this year partly because of negative reactions in the US and Europe to Musk’s political actions.

What Tesla management said

US government cuts in support for EV makers could lead to a “few rough quarters” for the company before a wave of revenue, from self-driving software and services, begins late next year, said Tesla CEO Elon Musk on a conference call.

“We probably could have a few rough quarters,” said Musk, quickly adding: “I am not saying that we will, but we could.”

The management also mentioned higher tariff costs and the end of federal electric vehicle tax credits.

All eyes on Tesla shares today

The Nasdaq-listed Tesla stock is set to open for trade later in the day.

Trading on Nasdaq begins at 9:30 am Eastern Time (7 pm in India).

Tesla India Experience Centre | Where is it and is there another one on the cards?

Inaugurated in mid-July, Tesla’s “experience centre” is located in Mumbai.

The American auto giant is also planning to open a store in the national capital.