Tesla (TSLA) released its financial results for the first quarter of 2025, showing a tough start to the year. Revenue and profit both fell short of expectations.
Financial Results
Tesla brought in $19.3 billion in revenue, about 9% lower than the same time last year. Analysts had expected around $21.3 billion.
Net income dropped to $409 million. That’s a 71% fall from the first quarter of 2024. Non-GAAP earnings per share came in at $0.27, under the expected $0.41.
Tesla’s operating margin dropped sharply to 2.1%, down from 11.4% a year earlier.
Free cash flow was $664 million. The company ended the quarter with $37 billion in cash and investments.
Production and Delivery
Tesla delivered 336,681 vehicles during the quarter. This included 323,800 units of the Model 3 and Model Y, and 12,881 from its other models.
Production totaled 362,615 vehicles, made up of 345,454 Model 3 and Model Y units, and 17,161 of other types.
Tesla says the drop in deliveries was linked to updates on the Model Y production lines. Lower average prices also played a role.
Energy Business
Tesla Energy continued growing. It deployed 10.4 GWh of energy storage products during the quarter.
Looking Ahead
Tesla plans to roll out a robotaxi pilot program in Austin, Texas, starting in June 2025. The test will use current Model Y vehicles fitted with updated software to allow self-driving.
Work is also underway on a more affordable EV platform. Tesla expects to release it sometime in 2025 to help make electric cars more available to a wider market.
The company is also pushing forward with projects in AI and robotics. These include the Optimus humanoid robot, which is still in development.
Elon Musk said he’s cutting back on his involvement with the Department of Government Efficiency (DOGE). He plans to focus more on Tesla operations going forward.
Despite the weak financial numbers, Tesla shares jumped more than 5% in after-hours trading. Investors appear to be hopeful about Tesla’s new tech efforts and Musk’s renewed attention on the company.
For a full breakdown and Tesla’s future plans, you can watch the Q1 2025 earnings call below:
You can also check Tesla’s Q1, 2025 update letter below:
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