Tesla (TSLA) stock was volatile in after-hours trading following the release of its second-quarter results. The EV maker’s adjusted earnings per share came in at $0.40, in line with the analysts’ consensus estimate. The bottom line, however, declined 23% on a year-over-year basis.
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Further, the company’s Q2 revenue fell by 12% year-over-year to $22.5 billion but marginally beat the analysts’ estimates of $22.19 billion. The fall was primarily due to a decline in vehicle deliveries, lower regulatory credits revenue, weaker energy and storage sales, and a drop in average selling prices.
Also, Tesla’s free cash flow dropped sharply in Q2 to just $146 million, down from $1.34 billion in the same quarter last year. Despite the drop, Tesla ended the quarter with a strong cash position of $36.8 billion.
Q2 Operational Updates
During the quarter, Tesla delivered 384,122 vehicles, reflecting a 13.5% year-over-year drop, while production remained steady at just over 410,000 units. The refreshed Model Y Highland helped offset some delivery weakness, while Cybertruck volumes remained limited.
At the same time, energy deployments totaled 9.6 GWh, reflecting 2% growth from the year-ago quarter.
Further, TSLA continued to expand its Supercharging network. It added more than 2,900 Supercharger stalls on a net basis, an 18% increase from a year ago.
Tesla Bets Big on AI but Holds Back 2025 Outlook
Beyond the numbers, TSLA continues to bet on autonomy and robotics. CEO Elon Musk reiterated Tesla’s transformation into an AI company, with investments in its Optimus humanoid robot and AI infrastructure expected to exceed $10 billion this year.
Also, the company said it began early builds of its long-awaited affordable EV model in June, with volume production expected in the second half of 2025.
Coming to outlook, the company refrained from providing a full-year forecast and said, “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.”
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, 12 Holds, and seven Sells assigned in the last three months. At $299.52, the average Tesla price target implies a 9.81% downside potential. The stock has declined 20.59% over the past six months.
It must be noted that analysts may update their price targets for TSLA stock after this earnings report.
