Wed, Apr 23, 10:03 AM (23 days ago)
**Tesla, Inc. (TSLA) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $19.34 billion, a 9% decrease from Q1 2024 ($21.30 billion). - **Net Income:** $409 million, a significant decrease from $1.39 billion in Q1 2024. - **Gross Profit:** $3.15 billion, down from $3.69 billion in Q1 2024. - **Operating Expenses:** Increased by $229 million, with R&D expenses rising by $258 million (22% increase). - **Cash Flow:** Positive operating cash flow of $2.16 billion, a substantial increase from $242 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 16.3%, down from 17.4% in Q1 2024. - **Operating Margin:** 2.05%, decreased from 5.49% in Q1 2024. **Cash Flow and Earnings Changes:** - **Operating Cash Flow:** Increased by $1.91 billion. - **Capital Expenditures:** Decreased by $1.29 billion to $1.49 billion. - **Net Cash Provided by Financing Activities:** Decreased by $528 million to a net outflow of $332 million. **Quarterly Performance Discussion:** - **Revenue Decline:** Driven by a 21% decrease in automotive sales and a 20% decrease in total automotive revenues. - **Cost Management:** Effective cost reductions in automotive sales and services, but offset by increased R&D and other operating expenses. - **Profitability:** Lowered due to higher costs and reduced revenues, despite cost-saving measures. **Trends and Uncertainties:** - **Supply Chain Constraints:** Ongoing challenges in the global supply chain affecting production and costs. - **Market Uncertainties:** Economic and political factors impacting demand and operational efficiencies. - **Future Operations:** Focus on expanding production capacity, improving operational efficiencies, and investing in AI and autonomous technologies. **Future Outlook:** - **Production and Delivery:** Continued focus on ramping up production and improving delivery capabilities. - **Cost Management:** Ongoing efforts to reduce costs and improve operational efficiencies. - **Investment:** Continued investment in R&D, particularly in AI and autonomous technologies. - **Cash Flow:** Expectation of maintaining positive cash flow from operations, with strategic investments in growth areas. **Legal and Regulatory:** - **Ongoing Litigations:** Several legal proceedings related to executive compensation, product defects, and regulatory compliance. - **Regulatory Compliance:** Continued focus on adhering to regulatory requirements and managing legal risks. **Financial Metrics:** - **Cash and Investments:** $36.99 billion in cash and short-term investments. - **Debt:** $7.27 billion in outstanding indebtedness, with $2.17 billion current. - **Capital Expenditures:** Expected to exceed $10 billion in 2025, subject to trade policy changes. **Conclusion:** Tesla's Q1 2025 financial results reflect a challenging quarter with revenue and profit declines, driven by supply chain issues and market uncertainties. The company is focusing on cost management, operational efficiencies, and strategic investments to drive future growth and maintain financial stability.