Tesla shares plunge over 8% on sharpest quarterly sales decline in 10 years
ADVERTISEMENT Tesla shares fell amid significant volumes with over 100 million shares (10.8 crore) shares changing hands.
Tesla's net income attributable to common stockholders was also down 16% in the quarter to $1,172 million compared to $1,400 crore in the corresponding quarter of the last financial year.
The company's total revenues in Q2-2025 were reported at $22,496 million, down by 12% over $25,500 million reported in the year ago period.The company had announced its earnings on Wednesday.The operating expenses stood at $2,955 million, down 1% over 2,973 in the year ago period while the operating margin was reported at 4.1%, which was a fall of 219 bps compared to 6.3% in Q2-2024.
ADVERTISEMENT Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) stood at $3,401 million, down by 7% over $3,674 million in the year ago period. Adjusted EBITDA margin stood at 15.1%, up by 71 bps over 14.4% in Q2-2024.
ADVERTISEMENT Total revenue decreased 12% YoY to $22.5B and impacted by the decline in vehicle deliveries, lower regulatory credit revenue, reduced vehicle average selling price (ASP) (excl. FX impact1), due to mix and decline in Energy Generation and Storage revenue due to lower ASP, the company filing to the exchange said.Quarter-end cash, cash equivalents and investments was $36.8B. The sequential decrease of $0.2B was primarily the result of changes in restricted cash and cash used in financing activities partially offset by free cash flow.
ADVERTISEMENT
It was Elon Musk company's worst quarterly decline in sales in over a decade, a Reuters report said, adding that Tesla's second-quarter profit missed analysts' expectations, yet its profit margin on making cars was not as bad as many had feared.On a conference call, chief executive Musk said U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year.
ADVERTISEMENT "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," a company statement said.On product, Tesla said that its focus remains on prudently growing its vehicle volumes in a capex efficient manner by using our existing vehicle production capacity before building new lines. Plans for new vehicles that will launch in 2025 remain on track, including initial production of a more affordable model in 1H25.
"Our purpose-built Robotaxi product – Cybercab – will continue to pursue a revolutionary 'unboxed' manufacturing strategy and is scheduled for volume production starting in 2026," the filing said.
(You can now subscribe to our ETMarkets WhatsApp channel)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
3 hours ago
- Time of India
Sanctions risk: Indian firm defends explosive shipment to Russia; says material for civilian use only
This is an AI-generated image, used for representational purposes only. An Indian company that exported $1.4 million worth of an explosive compound to Russia last December said it complied with Indian rules and that the shipment was strictly for civilian industrial purposes, not military use. According to news agency Reuters, Ideal Detonators Private Limited confirmed that the material exported, HMX, also known as octogen, was not of military grade. 'The shipment ... is for industrial activity and it's a civil explosive,' the Telangana-based firm said in an email response. HMX is known for its powerful military applications, including use in missile and torpedo warheads and other advanced weapon systems. The US government has called the compound 'critical for Russia's war effort' and has warned that any sale of such materials to Moscow could trigger sanctions under its treasury department's guidelines. Reuters first reported that Ideal Detonators shipped HMX to two Russian buyers in last December, Promsintez and High Technology Initiation Systems (HTIS), according to Indian customs data. One of them, Promsintez, has ties to Russia's military, a Ukrainian security official claimed, and its factory was targeted by a Ukrainian drone attack in April. The US state department said it had communicated with India about the risks involved in doing military-related business with Russia. "We have repeatedly made clear to all our partners, including India, that any foreign company or financial institution that does business with Russia's military industrial base are at risk of US sanctions," a spokesperson was quoted as saying by Reuters. India's foreign ministry, however, responded that all dual-use exports are regulated under a robust legal framework. 'India has been carrying out exports of dual-use items taking into account its international obligations on non-proliferation,' the ministry said. According to Reuters, HMX is also used in limited civilian areas such as mining and industrial blasting. HTIS, one of the recipients, claims to manufacture explosives for mining and engineering projects. HTIS is listed as a subsidiary of Madrid-based Maxam, which is controlled by US private equity firm Rhone Capital. Maxam is reportedly in the process of divesting its Russian subsidiaries. While India has deepened ties with Washington in recent years, its historic defense and trade relationship with Moscow remains intact. Indian oil purchases and other trade with Russia have remained strong, even amid global sanctions over the Ukraine war. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Deccan Herald
5 hours ago
- Deccan Herald
Indian firm says it shipped non-military explosives to Russia
Reuters reported on July 24 that Ideal Detonators Private Limited shipped the compound, known as HMX or octogen, to two Russian explosives manufacturers despite US threats to impose sanctions on any entity supporting Russia's Ukraine war effort.
NDTV
5 hours ago
- NDTV
Long-Range Drones Damaged Russian Electronic Warfare Equipment Plant: Ukraine
Kyiv: Ukrainian drones hit a radio and electronic warfare equipment plant in Russia's Stavropol region in an overnight attack on Saturday, an official from the SBU security service told Reuters. The official said two facilities at the Signal plant in the city of Stavropol, about 540 km (335 miles) from the Ukrainian border, were damaged in the attacks. He shared several short videos showing an explosion and a large column of dark smoke rising into the sky. He said the plant was one of Russia's leading producers of electronic warfare equipment, including radar, radio navigation equipment, and remote control radio equipment. "This night, long-range SBU drones struck the production facilities of the Stavropol Radio Plant 'Signal'," said the SBU official. "Each such attack stops production processes and reduces the enemy's military potential. This work will continue." Reuters was unable to verify the details of the attack. Russia's defence ministry did not immediately respond to a request for comment. Since Russia's invasion of Ukraine in February 2022, both sides have launched multiple drone attacks on each other. Ukraine, which is fighting a much larger Russian army, has developed a drone industry from scratch and is now focusing on increasing its capacity to produce more long-range drones.
