Tesla Stock Flat After Q2 Earnings Light On Revenue And Earnings, Heavy On Vision, But Lacking Guidance

Tesla's Q2 earnings revealed adjusted EPS of 40c, missing estimates, and revenue of $22.50 billion, down 12% year-over-year, also falling short of expectations. Gross margin was a bright spot, beating estimates at 17.2%, but free cash flow plummeted 89% year-over-year to $146 million. Revenue and profitability were impacted by lower regulatory credit revenue, decreasing to $439 million. Vehicle deliveries declined across models, with Model 3 and Y deliveries dropping 12% and other models plunging 52%. "Services and Other Revenue" jumped 17% due to Supercharging network growth. Tesla is expanding its vehicle offerings, planning volume production of a more affordable model in the second half of 2025. The company aims to transition into a leader in AI, robotics, and related services, launching a Robotaxi service in Austin. Tesla cited macroeconomic uncertainty due to shifting fiscal policies. Despite positive free cash flow, analysts debate whether Tesla is an auto business or an AI/robotics company.