Company’s Cheaper Model ‘On Track’ Despite Missed Launch Date

Some Wall Street analysts have described Tesla’s second quarter as “confusing” due to high uncertainty around its stock reaction, especially in light of recent dominance by the robotaxi. Therefore, Elon Musk’s commentary during the earnings call is particularly significant this time.

Before diving into the earnings details, let’s review analysts’ consensus estimates for Tesla’s latest release.

Their consensus is somewhat different from FactSet’s poll, which suggests quarterly revenue of $22.1 billion and an adjusted EPS of $0.39.

Tesla (TSLA) Q2 2025 Earnings

Tesla reported $22.496 billion in revenue for the second quarter of 2025, surpassing expectations by $21.934 billion (IR-compiled consensus estimate).

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The above chart provides a segmental overview of Tesla’s top-line metric for the quarter.

Tesla’s operational summary table during the quarter shows production, deliveries, and storage data from Q2 2024 to Q2 2025. As we reported earlier this month, Tesla delivered 384,122 units against a production level of 410,244 units.

Tesla’s auto gross margin (excluding regulatory credits) was 14.96 percent for the quarter. Free cash flow was approximately $100 million for Q2 2025. Tesla announced non-GAAP (adjusted) EPS of $0.40, beating expectations of $0.39.

Tesla earned $439 million via regulatory credits in Q2 2025. This metric has become crucial as President Trump’s Big, Beautiful Bill is expected to negatively impact ZEV credit demand by eliminating penalties for automakers failing to meet CAFE standards. Previously, California and other states could set stricter emissions standards than federal requirements.

According to Wells Fargo analyst Colin Langan, regulatory credits contributed around 32 percent of Tesla’s 2024 EBIT, with CARB ZEV credits making up about 50 percent of the total. Once this stream ends in Q3, Langan expects Tesla’s income from regulatory credits to be halved, with only GHG and EU credits remaining.

Coming back, here is Tesla’s latest guidance:

Tesla says that the launch of a more affordable model remains on track even though its original first half 2025 window was missed. Shares are generally flat in early after-hours trading.

Analysts and investors will pay close attention to Tesla’s earnings call for insights into its autonomy-related tailwinds. We’ll continue updating this post with details from the call.

Tesla began operating a dozen or so robotaxis in June, geofenced in Austin with teleoperators and physical attendants on standby.

Analysts and investors are expected to scrutinize Tesla’s earnings call for clues about its autonomy-related tailwinds. We will update this post with relevant details from the call.

Earnings call updates:

1. CFO Taneja expects “Big, Beautiful, Bill” to impact sales.
2. Tesla is seeking robotaxi regulatory permits in various locations including the Bay Area, Nevada, Arizona, and Florida.
3. Tesla aims to acquire supervised FSD permits in the Netherlands and resolve lingering FSD-related challenges in China.
4. Optimus production-ready prototypes will debut this year, with volume production planned for 2026.