Tesla’s second quarter numbers didn’t wobble. They collapsed.
Free cash flow came in at $146 million. Last quarter was $664 million. Wall Street expected $760 million. That’s a miss by more than $600 million. The drop-off wasn’t subtle.
Only one part of the business showed growth compared to last year. That was services and other revenue. Everything else shrank.
Automotive revenue slid to $16 billion. That is a 16% drop. Vehicle deliveries fell 13.5%, hitting 384,000 units. Operating income got cut nearly in half. It dropped to $900 million. Margins shrank again. Now sitting at 4.1%. Earnings per share slipped to $0.40 from $0.52. Total revenue dropped to $22.5 billion. That is a 12% decline.
The stock closed at $332.56. After hours, it moved lower. $317.87 was the last print. Down 4.4% on the session. Volume was heavy. More than 92 million shares changed hands. Tesla’s market cap still hovers around $1.07 trillion. The P/E ratio sits at 182.79. Price action remains stuck. Support sits near $275. Resistance is around $350. It is not breaking out.
$TSLA my god this is brutal, literally the only item up YoY is services and other revenue LOOL pic.twitter.com/CPpNm6PrSu
— Hooman (@hoomansv) July 23, 2025
Capital spending was aggressive. Tesla burned through $2.39 billion. That was one reason free cash flow tanked. Liquidity is not a problem. The company holds $36.8 billion in cash and investments. Charging network added another 2,900 stalls. Tesla Energy broke another Powerwall record. Fifth quarter in a row.
The robotaxi test is now active in Austin. Vehicles are on the road with safety drivers inside. There is no firm date for full autonomy. In Texas, Tesla installed 16,000 H200 chips. That brings compute power to the equivalent of 67,000 H100s. The first fully autonomous car was just delivered to a buyer. That moment finally happened. Meanwhile, Model Y launched in India. South Korea, Malaysia, and the Philippines reported strong delivery figures.
Reaction on the ground is cautious. One Austin local told KXAN it looks cool but he will not ride one until the driver is removed and it actually works. That sums up public trust right now.
India’s Model Y pricing undercuts most domestic EVs. That’s a smart move. Still, charging access is limited. Infrastructure is lagging.
Executive exits are adding up. Sales and manufacturing heads for North America and Europe are gone. Musk’s political activity keeps adding risk. Especially in the U.S. and Europe. Sentiment is sensitive.
Tesla is sticking to the roadmap. The low-cost model is still penciled in for early 2025. Battery materials will continue to be sourced inside the U.S. That remains a major focus.
If you’re bullish, the long view on autonomy and compute expansion is intact. If you’re not, these earnings numbers do most of the talking. The stock is trapped in a range. Until profit growth shows up again, it stays a trader’s playground.
Sources:
https://coincentral.com/tesla-tsla-stock-revenue-declines-12-as-focus-shifts-to-robotaxi-and-ai/
https://www.macrotrends.net/stocks/charts/TSLA/tesla/free-cash-flow
https://finance.yahoo.com/quote/TSLA/cash-flow/
https://stockanalysis.com/stocks/tsla/financials/cash-flow-statement/
