Tesla Earnings: The Good, The Bad, And The Robotaxi

It was never going to be pretty. But even with expectations already on the floor, Tesla's (NASDAQ:TSLA) Q2-2025 earnings managed to let down the short-term crowd, pushing shares over 30% lower since mid-December.

But as always with Elon, it's never just about the numbers. Here's a breakdown of what really happened… the good, the bad, and the ugly.

THE GOOD

Tesla is finally doing something about robotaxi. Elon confirmed live testing has begun in the Bay Area with drivers behind the wheel… think of it as Shadow Mode 2.0. If scaled properly, this could be the on-ramp to full autonomy.

We also got an update on the next-gen compact EV, with limited production slated for late 2025. This is a critical milestone. Tesla needs a volume vehicle to stay competitive in price-sensitive markets like India, Southeast Asia, and Europe, where sub-$25K EVs will dominate.

THE BAD

This was Tesla's first double-digit YoY revenue decline in years… down 12% to $22.5B. Adjusted EPS came in at $0.40, missing estimates.

Automotive revenue was down nearly 17%, and free cash flow shrank to just $100M. Margins are getting squeezed, credit sales are drying up, and delivery growth is stalling. Tesla shipped only 384,000 vehicles, a 14% drop YoY. That's not just macro pressure… that's demand erosion.

The pricing war is taking its toll, and it's clear not everyone's winning.

THE UGLY

Let's not sugarcoat this… investors hated the print. A 9% drop post-earnings is brutal, and the call didn't offer much comfort.

Elon called it a "weird transition period," cited policy uncertainty, and warned about the impact of the EV tax credit rollback and new tariffs. The tone was cautious. The message? Buckle up.

This wasn't a growth quarter. It was damage control.

Our TAKE

If your thesis is built around Robotaxi, Dojo, and AI-driven infrastructure, nothing here breaks it.

But if you're long Tesla expecting earnings momentum, margin recovery, or a beat-and-raise story, this quarter just told you… not yet.

Tesla looks like a company between chapters.

The question now is… how soon does the next one begin… and what story will it tell?

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.