Tesla reported significantly reduced profit in the first quarter of 2025, driven by decreased vehicle deliveries, ongoing production line changes, and lower average selling prices. The company posted a GAAP net income of $409 million, down 71% year-over-year. Non-GAAP net income, which excludes stock-based compensation and digital asset gains or losses, came in at $934 million — a 39% drop from the same period last year.
Total revenue for the quarter was $19.3 billion, a 9% decrease year-over-year. Automotive revenue declined 20% to $13.97 billion, attributed to a combination of lower vehicle deliveries and pricing adjustments. Deliveries totaled 336,681 vehicles during the quarter, down 13% compared to Q1 2024. The decline was partially due to a coordinated global production line update for the Model Y across four factories.
Despite the near-term challenges, Tesla highlighted strong growth in its Energy business, which saw a 67% increase in revenue year-over-year. The company deployed 10.4 GWh of energy storage, up 154% from the prior year. Tesla also reported its fourth consecutive record for Powerwall installations, surpassing 1 GWh in a single quarter.
Cash flow remained positive. Tesla reported $2.2 billion in operating cash flow and $664 million in free cash flow. The company’s total cash and investments grew to $37 billion, reflecting its continued emphasis on maintaining liquidity amid an uncertain macroeconomic and trade environment.
Tesla emphasized its continued investment in artificial intelligence and autonomy. It launched supervised Full Self-Driving (FSD) in China and announced that production vehicles including the Model 3, Model Y, and Cybertruck can now autonomously drive from factory lines to outbound lots. A pilot launch of its purpose-built Robotaxi is scheduled to begin in Austin by June, with volume production planned for 2026.
The company also confirmed that more affordable vehicles — combining elements of current and next-generation platforms — are still scheduled to enter production in the first half of 2025. These vehicles will be built using Tesla’s existing manufacturing lines to reduce capital expenditures during uncertain economic conditions.
While Tesla warned that evolving trade policies and political factors could continue to impact demand and cost structure, it reiterated its commitment to expanding its product lineup and investing in AI-driven software and robotics platforms.
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