Quarterly Report — Q1 2025
Filed April 23, 2025
Q1 2025 revenue declined year-over-year, with automotive sales — still the dominant segment — losing ground while energy generation and storage continued to grow as a meaningful revenue contributor. The company maintained a strong cash position and kept debt levels relatively stable, but the core auto business showed clear pressure compared to Q1 2024. Digital assets (Bitcoin) remained on the balance sheet, adding a speculative wrinkle to an otherwise straightforward manufacturing story.
Filing details
Performance by segment
Automotive
Automotive segment revenue fell 16% YoY to $16.61 billion (including services and other), with automotive sales alone dropping 21% to $12.93 billion driven by ~51,000 fewer Model 3/Y deliveries due to the simultaneous New Model Y changeover across all factories. Automotive gross margin compressed from 18.5% to 16.2% on lower average selling prices from sales mix, higher customer incentives, and FX headwinds, partially offset by lower raw material costs and a 35% increase in regulatory credit revenue to $595 million.
“In the first quarter of 2025, we accomplished an industry first - simultaneously changing over production lines across all factories for our New Model Y.”
Energy Generation and Storage
Energy generation and storage revenue surged 67% YoY to $2.73 billion, driven by increases in both Megapack and Powerwall deployments with 10.4 GWh deployed in Q1 2025. Segment gross margin expanded from 24.6% to 28.8% as a higher proportion of storage business operated at higher margins and average costs per unit decreased from lower raw material costs. Remaining performance obligations reached $9.95 billion, signaling a robust backlog.
“Despite these challenges, as AI infrastructure drives rapid load growth, we see opportunities for our energy storage products to stabilize the grid, shift energy when it is needed most and provide additional power capacity.”
Services and Other
Services and other revenue grew 15% YoY to $2.64 billion, driven by increases in paid Supercharging revenue, insurance services, non-warranty maintenance and collision services, used vehicle revenue, and parts sales. Cost of services and other revenue increased proportionally by 15% to $2.54 billion, keeping segment-level margins roughly stable.