Tesla’s first-quarter 2025 results revealed a notable dip in earnings and vehicle deliveries, but the company remains focused on the future with their plans for affordability, autonomy, and energy innovation still on track.
In Q1, Tesla reported revenue of $19.3 billion — down 9% year-over-year — and net income of $409 million, marking a 71% decline from the same period in 2024. Earnings per share came in at $0.27, below analyst estimates, as production and deliveries declined 16% and 13% respectively.
A key reason for the drop was the temporary retooling of production lines at all four factories to accommodate refreshed Model Y units and prepare for new vehicle models.
Yet even in the face of these financial headwinds, investors responded with cautious optimism. Tesla stock rose in after-hours trading following the earnings release, bolstered by reaffirmed timelines for new product launches and a strong balance sheet.
Tesla’s financial foundation remains solid. The company increased its cash and equivalents to nearly $37 billion, a 38% year-over-year gain. Capital expenditures were also reduced to $1.49 billion — nearly half of the previous quarter — allowing Tesla to maintain operational flexibility as it ramps up for the next wave of innovation.
One area of continued strength is Tesla’s energy division. Energy generation and storage revenue soared 67% year-over-year to $2.73 billion, as grid-scale battery deployments and Powerwall installations continue to expand globally. Regulatory credit revenue also climbed to $595 million, up from $432 million in Q1 2024.
Tesla’s cryptocurrency position also remained steady. The automaker held firm at 11,509 Bitcoin throughout the quarter — worth just over $951 million at the end of March — and that value has since climbed past $1 billion with the recent crypto rebound. Thanks to new accounting rules, investors now get a more accurate picture of the company’s digital asset performance each quarter.
Looking ahead, the company confirmed that production of its long-awaited, more affordable electric vehicles is on schedule to begin in the first half of 2025. However, the company suggested these will in fact be based on existing Model 3 and Model Y platforms but with fewer high-end features.
Autonomy also remains a core focus. Tesla reiterated that its robotaxi pilot in Austin will launch in June using Model Ym with full-scale Cybercab production targeted for 2026.
