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Tesla Q1 2025 Profits Drop 39% Amid Strategic Shift, Energy Storage Surges 67%

Tesla reported a 39% year-over-year decline in net income to Rs8,161.8 crore in Q1 2025, down from Rs13,498 crore in the same period last year. The drop was largely due to a global production line transition for the Model Y and strategic investments in AI and energy businesses.

Quarterly revenue fell 9% to Rs1,68,458 crore, missing analyst expectations by over Rs17,400 crore. Automotive revenue, which remains Tesla’s core business, dropped 20% YoY to Rs1,21,639 crore, as vehicle deliveries fell to 336,681 units, impacted by factory downtimes and pricing strategies that lowered average selling prices.

Tesla’s earnings per share (EPS) fell to Rs23.49 from Rs39.15 a year earlier, missing expectations by Rs13.05. Adjusted EBITDA dropped 17% to Rs24,447crore, with margins slipping due to higher R&D and restructuring costs. However, Tesla still generated Rs19,140 crore in operating cash flow and holds Rs3,21,900 crore in liquidity.

On a brighter note, Tesla’s energy storage business grew 67% to Rs23,751 crore, deploying 10.4 GWh of storage. The company crossed 1 GWh of Powerwall deployments for the first time and continues to scale its Megapack production from its Shanghai factory.

The Supercharger network now exceeds 67,000 connectors, and Tesla delivered 1.4 TWh of electricity across 4.2 crore sessions, emphasizing its growing role in EV infrastructure.

Tesla also completed a global Model Y production line upgrade and debuted its FSD (supervised) system in China. CEO Elon Musk confirmed the launch of the Tesla Robotaxi in Austin by June 2025.

Looking ahead, Tesla plans to start producing affordable EVs by mid-2025 and ramp up domestic battery and lithium operations to reduce tariff impacts and boost profitability.