- Tesla (TSLA, Financial) reports a 9% decline in Q1 2025 revenue due to Model Y production changes.
- Vehicle deliveries decrease by 13% year-over-year, affecting overall financial performance.
- Energy Generation and Storage revenue surges 67% to $2.73 billion, with significant growth in storage deployments.
Tesla (TSLA) announced its Q1 2025 financial results, revealing a 9% decrease in revenue compared to the same period last year, totaling $19.3 billion. This downturn was primarily attributed to disruptions in Model Y production line changeovers at all Tesla factories.
The company's vehicle deliveries also saw a significant decline of 13%, reaching 336,681 units. Deliveries for Model 3 and Model Y were recorded at 323,800 units, while other models accounted for 12,881 units. Consequently, GAAP operating income dropped 66% to $399 million, with the operating margin shrinking to 2.1%.
Despite these challenges, Tesla's Energy Generation and Storage division showed robust growth, with revenue increasing 67% to $2.73 billion. Storage deployments saw a substantial rise of 154%, reaching 10.4 GWh. The company marked a record in Powerwall deployments, surpassing 1 GWh for the first time.
As of the end of the quarter, Tesla maintained a strong cash position, holding $37.0 billion in cash, cash equivalents, and investments, a slight increase from the previous quarter. Free cash flow showed impressive growth, rising 126% to $664 million year-over-year.
On the product development front, Tesla launched the Long Range Cybertruck in April, boasting a range of 362 miles. The company also introduced FSD (Supervised) in China, marking its first expansion outside North America. Autonomous driving from production lines to outbound lots is now operational for Model 3, Model Y, and Cybertruck at both Fremont and Gigafactory Texas facilities.
Looking ahead, Tesla confirmed that production of new affordable models is set to begin in the first half of 2025. Furthermore, the company's Cybercab robotaxi is slated for volume production in 2026, with a pilot launch in Austin planned for June this year.
Tesla acknowledged uncertainties related to trade policy impacts on automotive and energy supply chains, indicating that it will reassess its 2025 guidance in its Q2 update.
