Anticipating Tesla’s Q2 Earnings: A Potential Revenue Decline Amidst Challenges
Tesla is poised to disclose its Q2 2025 financial results on July 23, 2025. Wall Street analysts are predicting a challenging quarter. The consensus estimates suggest earnings per share ranging from $0.40 to $0.43, indicating a 19-29% drop from the previous year. Meanwhile, revenue is anticipated to fall by approximately 11% to land between $22.6 and $22.7 billion.
The electric vehicle giant is grappling with several challenges, including a decrease in deliveries, margin pressure due to price reductions, and political backlash directed at CEO Elon Musk. Tesla’s Q2 deliveries amounted to 384,122 vehicles, marking a 14% decrease year-over-year. However, this figure slightly outperforms some of the more pessimistic estimates. Consequently, the company’s stock has seen a decline of over 21% since the start of the year, significantly underperforming when compared to the broader tech sector.
Investors and analysts will be closely monitoring several key areas during the upcoming earnings call. These include automotive gross margins, which are projected to stabilize around 16.4%, updates on the robotaxi platform, and guidance on the next-generation compact EV. Despite the challenges, Tesla’s energy storage business continues to shine, with 9.6 GWh deployed in Q2. Furthermore, the company maintains a strong financial position, with approximately $37 billion in cash and cash equivalents.
Source: https://www.tipranks.com/news/why-tesla-stock-could-surprise-in-q2-earnings