## Tesla Q1 2025 Earnings Call: Key Results and Highlights
**Date of Earnings Release and Call:**
Tesla released its Q1 2025 financial results after the market closed on April 22, 2025, followed by its earnings call and Q&A webcast at 4:30 p.m. Central Time (5:30 p.m. Eastern)[4][2][5].
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**Financial Results Overview:**
– **Total Revenues:** $19.3 billion
– **Automotive Revenues:** $13.97 billion
– **GAAP Gross Margin:** 16.3%
– **Gross Profit:** $3.15 billion
– **Non-GAAP EPS:** $0.27 per share
– **Operating Income:** $0.4 billion (down 66% year-over-year)
– **Operating Margin:** 2.1%
– **Free Cash Flow:** $664 million
– **Quarter-end Cash, Equivalents, and Investments:** $37 billion (increased by $0.4 billion due to positive free cash flow)[2][5].
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**Key Updates and Drivers:**
– **Revenue and Profitability:**
Total revenue decreased 9% year-over-year, mainly attributable to lower vehicle deliveries (in part due to Model Y changeover) and a reduction in average selling price (ASP). Despite this decline, Tesla remained profitable but saw significant pressure on margins and earnings, with operating income dropping sharply[2][5].
– **Margin Impacts:**
The decline in operating income and margin was influenced by reduced vehicle ASP, lower deliveries, and an increase in operating expenses, particularly in artificial intelligence (AI) and R&D. These were partially offset by a decrease in selling, general, and administrative (SG&A) costs[2][5].
– **Cash Position:**
Tesla’s cash position remained strong, with $37 billion in liquidity at quarter-end, reflecting disciplined cash flow management[2][5].
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**Notable Management Commentary:**
During the earnings call, executive commentary highlighted ongoing investments in AI and R&D as essential for Tesla’s future growth, even amidst current pressures on profitability. The impact of new product transitions, especially the Model Y changeover, was cited as a factor affecting deliveries and ASP this quarter[2][5][3].
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**Access to Full Materials and Replays:**
– The full Q1 2025 Update Letter, detailed financials, and the webcast replay are available on Tesla’s Investor Relations website[4].
– A replay of the live earnings call, including management’s Q&A session, is accessible on both Tesla’s IR site and YouTube[3][4].
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**Summary Table: Tesla Q1 2025 vs YoY**
| Metric | Q1 2025 | YoY Change | Notes |
|————————|—————|————-|————————————————————|
| Total Revenue | $19.3 billion | -9% | Impact from lower deliveries & ASP |
| Gross Margin (GAAP) | 16.3% | Down | Margin pressure due to ASP/mix & increased R&D |
| Operating Income | $0.4 billion | -66% | Significant decrease due to margin pressures |
| Non-GAAP EPS | $0.27 | Down | Reflects lower profit |
| Free Cash Flow | $664 million | – | Positive despite challenges |
| Cash & Equivalents | $37 billion | +$0.4 bn | Healthy balance sheet |
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For further details, access Tesla’s Investor Relations site or refer to the official Q1 2025 Update Letter and webcast replay[2][4].