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Tesla is out with its Q3 2025 earnings results, and the stock is moving in after-hours trading. The EV maker reported earnings-per-share of $0.50/share and revenues of $28.095 billion, missing analysts' EPS expectation of $0.52/share and beating estimated revenue of $26.27 billion. Listen to the Tesla (TSLA) Q3 2025 earnings call We will be streaming the Tesla earnings call on YouTube, Twitch, and Twitter. Tesla (TSLA) Q3 2025 Earnings Release Check out the full TSLA Q3 2025 earnings report on the Tesla Investor Relations website. Profitability $1.6B GAAP operating income $1.4B GAAP net income $1.8B non-GAAP net income Operating cash flow of $6.2B Record Free cash flow of nearly $4.0B $4.9B increase in our cash and investments to $41.6B Launched ride-hailing service in the Bay Area using Robotaxi technology Record energy storage deployments Record vehicle deliveries In Q3, the Tesla team achieved record vehicle deliveries globally, showing strength and growth across all regions, while also achieving record energy storage deployments across the residential, industrial and utility sectors. This strong performance resulted in both record revenue and free cash flow generation in the quarter. We continue to launch new products that excite our customers across automotive and energy. We launched the Model YL and Model Y Performance and further expanded our vehicle offering with the Model 3 and Model Y Standard, our most affordable vehicles. We also unveiled the Megapack 3 and Megablock, which will further simplify large battery installations by reducing cost and time to deploy. We believe our scale and cost structure will enable us to navigate the shifting market dynamics across the globe more effectively than our peers, with advances in AI making our products the most compelling in the market. Our focus remains on scaling our core hardware business by maximizing our deliveries and deployments, as these products will deliver increasing value to our customers over time via services powered by AI. Every Tesla vehicle delivered today is designed for autonomy while every Tesla energy storage product is capable of being enhanced and optimized by our virtual power plant or Autobidder functionality. We continue to deliver a fleet of products that brings AI into the real world as we pursue a future of sustainable abundance as outlined in our Master Plan Part IV. While we face near-term uncertainty from shifting trade, tariff and fiscal policy, we are focused on long-term growth and value creation. We are prudently making the necessary investments in our business, including future business lines, that we believe will drive incredible value for Tesla and the world across transport, energy and robotics. Revenue - Total revenue increased 12% YoY to $28.1B. YoY, revenue was impacted by the following items: increase in vehicle deliveries (+) growth in Energy Generation and Storage (+) growth in Services and Other (+) lower regulatory credit revenue (-) lower one-time FSD revenue recognition YoY due to Q3’24 releases related to Cybertruck and certain features such as Actually Smart Summon (-) Profitability - Our operating income decreased 40% YoY to $1.6B, resulting in a 5.8% operating margin. YoY, operating income was primarily impacted by the following items: increase in operating expenses (excl. SBC and Restructuring and Other) driven by SG&A, AI and other R&D projects (-) increase in SBC and Restructuring and Other charges (-) lower regulatory credit revenue (-) lower one-time FSD revenue recognition YoY as described above (-) higher average cost per vehicle due to lower fixed cost absorption for certain models, an increase in tariffs, and sales mix, partially offset bylower raw material costs (-) growth in Energy Generation and Storage gross profit (+) increase in vehicle deliveries (+) growth in Services and Other gross profit (+) Cash - Quarter-end cash, cash equivalents and investments was $41.6B. The sequential increase of $4.9B was primarily the result of increased free cash flow. It is difficult to measure the impacts of shifting global trade and fiscal policies on the automotive and energy supply chains, our cost structure and demand for durable goods and related services. While we are making prudent investments that will set up our vehicle, energy and other future businesses for growth, the actual results will depend on a variety of factors, including the broader macroeconomic environment, the rate of acceleration of our autonomy efforts and production ramp at our factories. We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses. Furthermore, we will manage the business such that we maintain a strong balance sheet during periods of uncertainty. While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware-related profits to be accompanied by an acceleration of AI, software and fleet-based profits. We continue to evolve and augment our product lineup with a focus on cost, scale and future monetization opportunities via services powered by our AI software. We remain focused on growing our sales volumes through a differentiated and efficiently managed product portfolio, which includes leveraging and optimizing our existing production capacity before building new factories and production lines. Cybercab, Tesla Semi and Megapack 3 are on schedule for volume production starting in 2026. First generation production lines for Optimus are being installed in anticipation of volume production. Tesla (TSLA) Q3 2025 Earnings News Highlights Check out all of our Tesla news coverage: Tesla (TSLA) Q3 2025 earnings results miss EPS estimates, beat revenue expectations Tesla (TSLA) reports 5.8% Q3 2025 operation margin Take Back Tesla urges TSLA shareholders to vote against Musk's $1 trillion pay package Tesla (TSLA) says it is now building AI inference & training chips with Samsung in the United States Listen to Tesla's (TSLA) Q3 2025 earnings call here Tesla (TSLA) Q3 2025 conference call transcript Tesla's earnings results conference call is set to kick off at 5:30 p.m. ET. Keep an eye on this article for a transcription of the earnings call right here. Elon opening remarks begin 5:36 PM ET Tesla is the leader in real world AI We are at an inflection point in AI Claims Tesla has the best AI in a car and they are just beginning People don't quite appreciate the degree to which this will take off Honestly it will be like a shockwave Cuz the cars are all out there with a software update become FSD cars We're making a couple million a year with what we see now on clarify of achieving FSD feel confident in expanding Tesla production Was reticient to do that until we had clarity on achieving FSD expanding production as fast as we can making huge impact on the energy sector with battery storage we're also on the cusp of something tremendous with Optimus Has the potential to be the biggest product of all time difficult product it's not just automatic not aware of any other American automakers with as advanced of a robot as Optimus Exciting plans for Megapack 4 Can create a world of abundance with Optimus A world where everyone has healthcare? "headed toward a world of sustainable abudance CFO begins comments Q3 was a special quarter total revenue record Investor questions begin What are the latest Robotaxi metrics? When will saftey drivers be removed? We are expecting to have no safety drivers in large parts of Austin by the end of 2025 - Musk Being very cautious on deployment Better to take a cautious approach What is the demand and backlog for energy storage systems? Demand for Megapack and Powerwall remain strong Megablock product reviews are good Strong demand from Hyperscalers Surge in residential solar demand Began production of residential solar panels in Buffalo and will ship in Q1 2026 Next question related to future products, skipped What are the challenges of bringing Optimus robot to market? It's an incredibly difficult task Not some walk in the park, althought the robot can walk in the park Robots walking around in Palo Alto, California Hard to create a hand as capable as a human hand Why you need four fingers and a thumb etc Turns out all those things are there for a reason Making the hand and forearm for Optimus is a difficult engineering challenge Harder than the entire rest of the robot You do need an incredible hand and real world AI and scale production to have it be relevant Trying to make a million Optimus robots in a year is tough because the supply chain doesn't exist There is no supply chain for a humanoid robot Tesla needs to be very vertically integrated to execute on scale Optimus robot production a startup can't do this That's why Tesla is in a unique position to make the Optimus product If I go ahead and build a robot army, can I be ousted in the future? - Musk Skipping two investor questions Can you update on the Samsung AI chip deal? Elon says Tesla is working with both TSMC and Samsung Confident the chip will be a winner Goal is to have an oversupply AI chips We can always put them in the data center... Not trying to replace NVIDIA NVIDIA has a lot of customers Tesla is just building chips for Tesla Tesla is aiming for radical simplicity Claims AI 5 chip will be great Instead of trying to replace Hardware 3 with Hardware 4, why not give an upgrade option? CFO - Allowing customers to shift FSD to future vehicle purchases Hardware 3 car buyers were our early adopters and we will take care of that V 14 light FSD software for HW3 cars How long until we see FSD Tesla Semi Trucks? Factory is on schedule Fleet of validation trucks driving on the road ramping into H2 2026 first step to getting autonomous trucks on the road the last mile of the load/unload is better fit for trucks than trains Analyst questions begin Wolf first question How should we think about autonomy and scale? Will demand need boosting? Our capacity isn't quite 3 million - Elon It will be 3 million annualized within 24 months or less there's an entire supply chain that has to move in tandem with that expanding production as fast as we can and as fast as our suppliers can keep up with it incremental factories beyond that Cybercab begins production in Q2 2026, no steering wheel or pedals I don't think we will sacrifice margins? No Can you text while you drive will be the killer app of Cybercab Anyone who can buy the car will buy the car Other AI improvements that are quite radically coming This car will feel like it is a living creature and that is before AI 5... which Musk claims is 40 times better It might be too intelligent for a car people might get bored that seems like a pretty significant asset - Musk Morgan Stanley next Adam can't unmute his phone next up Barclays asks Elon about Master Plan 4 AI plans When you think about the growth prospects in Tesla's core competencies where are the places you think are the focus? Elon says they started with no core competencies Think of Tesla as a company made of 12 startups Core competencies are created while you wait Optimus at scale is the infinite money glitch It doesn't even need to charge Optimus Robot can operate tethered We also have added a lot of new engineers to the Optimus team Optimus engineering team is very talented iterative loop between engineering design and manufacturing design radical iimprovements while increasing the functionality Optimus 2 is almost impossible to manufacture We've gone from a person in a robot outfit to a robot doing kung fu at the Tron red carpet A lot of people walked past it not realizing it was a real robot the movements were so human-like a lot of people didn't realize they were looking at a robot Optimus 3 will be a huge improvement on that the Optimus manufacturing and engineering reviews and AI meetings are crucial to the future of the company How are Tesla AI and xAI complementary? They are different forms of AI - Musk Grok is like a giant model You can't squeeze Grok into a car Grok is trying to solve for AGI Grok 5 is a beast Tesla's models are maybe 5--10% the size of Grok They are really coming at the problem for very different angles xAI and Grok are competing with Google Gemini and OpenAI ChatGPT Grok for Optimus voice recognition They are coming at it from opposite ends of the spectrum Adam from Morgan Stanley can't get his phone to work still Is the FSD safety driver limitation in the Bay Area regulatory? Is it an individual market thing? We would still do it without regulators - Elon Safety driver or safety occupant First priority when we release a new architecture for autopilot is safety I don't recommend people take the initial version Most people should wait until version 14.2 we will have addressed the comfort issues Reiterates claim about car feeling like a living creature with AI 5 Developing...
