Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Tesla's FY2025 revenue declined 2.9% to $94.8B while net income fell 46.5% to $3.8B, as surging R&D costs (+41.2%) and pricing pressures compressed operating margins to 4.6% from 7.2% the prior year.
Revenue
$94.83B
-2.93% YoY
EPS (Diluted)
$1.08
-47.06% YoY
Gross Margin
18.0%
+0.2 pts YoY
Operating Income
$4.36B
-38.45% YoY
Source: SEC XBRL
Tesla (TSLA) reported FY2025 revenue of $94.83B, down 2.9% year over year. Operating margin was 4.6%, down 2.6 points from 7.2% a year earlier. Operating cash flow was $14.75B, down 1.2% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.33 | 0.52 | Miss -36.4% |
| Mar 2026 | 0.41 | 0.38 | Beat +8.7% |
| Dec 2025This filing | 0.50 | 0.45 | Beat +10.1% |
| Sep 2025 | 0.50 | 0.56 | Miss -10.5% |
Reported EPS of $0.50 versus the $0.45 analyst consensus — a +10.1% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue fell 2.9% year-over-year to $94.8B in FY2025 from $97.7B in FY2024, reflecting continued vehicle price reductions and a challenging demand environment for electric vehicles globally.
Source: 10-K Income Statement (XBRL Financial Data)
Operating income dropped 38.5% to $4.4B, pushing the operating margin down to 4.6% from 7.2% in the prior year. This compression was driven by higher R&D spending (+41.2% to $6.4B) and increased SG&A expenses (+13.3% to $5.8B), which more than offset a modest improvement in gross margin to 18.0%.
Source: 10-K Income Statement (XBRL Financial Data)
R&D expenses surged 41.2% to $6.4B in FY2025, signaling Tesla's heavy investment in next-generation vehicle platforms, autonomous driving technology (Full Self-Driving), and energy products — a strategic bet on future growth at the cost of near-term profitability.
Source: 10-K Income Statement (XBRL Financial Data)
Total assets grew 12.9% to $137.8B, with cash and equivalents of $16.5B and a current ratio of 2.16, indicating a healthy liquidity position. Stockholders' equity expanded 12.7% to $82.1B, reflecting retained earnings growth despite the profit decline.
Source: 10-K Balance Sheet (XBRL Financial Data)
Operating cash flow remained robust at $14.7B (down only 1.2% YoY), demonstrating that Tesla's core business continues to generate substantial cash even as reported net income fell sharply, partly due to non-cash charges and working capital dynamics.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Tesla's operating margin fell to 4.6% in FY2025 from 7.2% in FY2024, a decline of approximately 265 basis points. Continued price cuts to stimulate demand risk further compressing profitability, especially as cost reductions may not keep pace with revenue headwinds.
Source: 10-K Income Statement (XBRL Financial Data)
R&D expenses jumped 41.2% to $6.4B and SG&A rose 13.3% to $5.8B, together consuming a significantly larger share of revenue. If these investments do not translate into near-term revenue growth, Tesla's earnings power could remain under pressure for multiple periods.
Source: 10-K Income Statement (XBRL Financial Data)
Basic EPS fell 47.1% to $1.18 from $2.23 in FY2024, and diluted EPS dropped to $1.08 from $2.04. This sharp decline may disappoint investors and could affect Tesla's premium valuation multiple if the trend persists.
Source: 10-K Income Statement (XBRL Financial Data)
Long-term debt increased 19.0% to $6.6B in FY2025, adding to Tesla's financial obligations at a time when profitability is under pressure. While the debt-to-equity ratio remains manageable at 0.67, continued borrowing could increase financial risk if cash generation weakens.
Source: 10-K Balance Sheet (XBRL Financial Data)
The 41.2% surge in R&D spending reflects Tesla's large bets on Full Self-Driving, robotaxi, and next-generation platforms. Delays in regulatory approval, technology development, or consumer adoption of these initiatives could result in significant sunk costs without corresponding revenue.
Source: 10-K Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 94.83 $B | 97.69 $B | -2.93% |
Cost of Revenue $B | 77.73 $B | 80.24 $B | -3.12% |
Gross Profit $B | 17.09 $B | 17.45 $B | -2.04% |
Operating Income $B | 4.36 $B | 7.08 $B | -38.45% |
Net Income $B | 3.79 $B | 7.09 $B | -46.50% |
EPS (Basic) $ | 1.18 $ | 2.23 $ | -47.09% |
EPS (Diluted) $ | 1.08 $ | 2.04 $ | -47.06% |
R&D Expense $B | 6.41 $B | 4.54 $B | +41.21% |
SG&A Expense $B | 5.83 $B | 5.15 $B | +13.28% |
Answers draw on this SEC filing and the data on this page
Tesla's Q2 FY2026 revenue rose 25.5% to $28.2 billion, but operating income halved as surging R&D and SG&A expenses from AI and autonomous vehicle investments compressed margins.
Tesla's Q1 2026 10-Q shows a strong rebound with revenue up 15.8% YoY to $22.4B, gross margin expanding nearly 5 percentage points to 21.1%, and operating income surging 135.8% to $941M, though net income of $477M reflects elevated R&D and SG&A spending.
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