TSLA Q1 2025 Earnings

Call Details

• Call Title: Tesla, Inc. Q1 2025 Earnings Call
• Date: April 22, 2025 at 9:30 PM UTC
• Management Team:
  • Travis Axelrod (Head of Investor Relations)
  • Elon Musk (CEO)
  • Vaibhav Taneja (CFO)
  • Ashok Elluswamy (VP of AI)
  • Lars Moravy (SVP of Vehicle Engineering)
  • Tom Zhu (President, Vehicle Manufacturing)
  • Drew Baglino (SVP of Powertrain and Energy Engineering)
  • Dev Atanesh (Head of Supply Chain)
  • Karin (Head of Battery Supply Chain)

Call Summary

Financial Performance

• Auto margins declined sequentially due to lower deliveries, reduced fixed cost absorption from factory changeovers, and lower regulatory credit revenues despite a slight increase in pricing.
• Other income decreased sequentially driven by a Bitcoin mark-to-market loss which resulted in a $472 million reduction versus the prior quarter.
• Energy storage achieved a record gross profit for the quarter despite a sequential decline in deployments.
• Powerwall 3 adoption is high and Tesla reported being supply constrained on Powerwall units in the quarter.
• Legacy Model Y inventory sold out in the U.S., China, and several other markets despite the coordinated global Model Y changeover.
• Q1 deliveries declined as previously guided because of a planned coordinated global Model Y factory update that caused several weeks of lost production.
• Tesla reported a record number of test drives globally in Q1, indicating sustained retail interest despite short-term headwinds.

Guidance

• Tesla expects to begin selling paid fully autonomous rides in Austin in June as previously stated.
• The company projects that autonomy will be material to financials around the middle to second half of next year and forecasts millions of autonomous Teslas operating in the second half of next year.
• Unsupservised FSD for personal use is expected to be available in multiple U.S. cities before the end of this year.
• Tesla expects thousands of Optimus robots working in factories by year-end and remains confident in a target of one million Optimus units per year by 2030, possibly 2029.
• CapEx guidance inclusive of model tariffs is forecasted to remain in excess of $10 billion for the year.
• There was no change to the previously disclosed plan that the coordinated Model Y changeover would reduce Q1 production as part of the cadence to introduce new versions.