An objective breakdown of Tesla’s $19.3 billion in revenue, 16.3% gross margin, and 336,681 vehicle deliveries
Tesla Q1 2025 Earnings Analysis: Revenue, Margins & Deliveries
“In Q1 2025 Tesla’s revenue fell 9% year-over-year to $19.3 billion and net income dropped 71% to $409 million, even as energy storage revenue grew 67%.”
Tesla’s first quarter of 2025 saw lower sales and profits compared to a year ago, largely due to aggressive price cuts and a temporary production slowdown. Revenue (the total money from sales) came in at $19.3 billion, which is about 9% lower than the same quarter last year (Tesla misses on Q1 results but claims cheaper EVs are still on track ...). Net income (profit after all costs) dropped sharply to about $0.4 billion, down ~71% year-over-year (Tesla's Q1 Earnings Miss Estimates). Tesla delivered 336,681 electric vehicles in Q1, 13% fewer than a year ago (when it delivered ~387,000) (Rivian and Tesla struggle with weakening demand in Q1). This delivery figure also missed Wall Street’s expectation of roughly 377,000 units (Rivian and Tesla struggle with weakening demand in Q1). Despite these declines, Tesla remained profitable and even grew its energy storage business significantly, offsetting some weakness in car sales. The company also continued to generate positive cash flow and increased its already large cash reserves. Below, we break down Tesla’s Q1 2025 income statement, balance sheet, and cash flow in simple terms, and compare the results to expectations, past quarters, and rival automakers.
Income Statement: Revenue, Margins, and Profitability
Revenue: Tesla’s Q1 2025 total revenues were $19.34 billion (Tesla misses on Q1 results but claims cheaper EVs are still on track ...). Revenue is the total income from selling cars, energy products, and services. This was below analyst forecasts (around $21–21.4 billion) (Tesla (TSLA) earnings report Q1 2025 - CNBC) (Tesla misses on Q1 results but claims cheaper EVs are still on track ...) and lower than Q1 2024’s $21.3 billion (Tesla misses on Q1 results but claims cheaper EVs are still on track ...). The decline in revenue happened even though Tesla’s cars are generally cheaper now – Tesla cut prices to boost demand, but it also delivered fewer cars this quarter. In fact, automotive revenue (from car sales) fell about 20% year-over-year to $13.97 billion (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV), reflecting both lower vehicle deliveries and lower average selling prices. By contrast, Tesla’s energy division (solar and battery storage) was a bright spot – energy generation & storage revenue jumped 67% to $2.72 billion as Tesla deployed a record amount of battery storage (). Services and other revenue (which includes things like paid repairs, charging, and merchandise) also grew ~15% to about $2.64 billion ().
Gross Profit and Margin: Gross profit is what’s left after subtracting the direct costs of making the products (materials, manufacturing, etc.) from revenue. Tesla’s gross profit for Q1 was $3.15 billion, down 15% from a year ago (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV). This gives a GAAP gross margin of 16.3% (meaning Tesla kept about 16 cents of each dollar in revenue after production costs), which is more than 1 percentage point lower than the 17.4% gross margin a year ago (). In simple terms, Tesla made less profit per car than it used to. The gross margin decline is due to the combination of lower prices (Tesla’s price cuts mean less revenue per vehicle) and higher costs per unit during the quarter. Notably, Tesla had some production downtime retooling factories for a new Model Y, which meant its factories weren’t running at full capacity for several weeks (Tesla First Quarter 2025 Production, Deliveries & Deployments). Producing fewer cars while fixed costs (like factory overhead) continue resulted in higher cost per vehicle, squeezing margins.
Operating Expenses and Operating Income: Operating expenses are the costs to run the business beyond producing the cars, such as R&D (research and development), administrative salaries, marketing, etc. Tesla’s operating expenses in Q1 2025 were $2.75 billion, which is about 9% higher than last year (). These costs include ongoing investments in new product development (like the Cybertruck and next-gen models) and company growth. After subtracting these expenses from gross profit, operating income (profit from core operations) was only $0.4 billion for the quarter (). That’s a 66% drop from the $1.17 billion operating profit a year ago (). Tesla’s operating margin – operating income as a percentage of revenue – fell to 2.1% in Q1 2025, down from about 5.5% a year prior (). An operating margin of 2.1% means Tesla earned just two cents of profit for each dollar of sales after paying all its costs of production and operations – a very slim margin, and much lower than the double-digit operating margins Tesla enjoyed in 2022.
Net Income and EPS: Net income is the bottom-line profit after all expenses, interest, and taxes. Tesla’s GAAP net income was $409 million in Q1 2025 (Tesla's Q1 Earnings Miss Estimates). By comparison, a year ago Tesla earned $1.39 billion in Q1 2024 (Tesla's Q1 Earnings Miss Estimates). This year-over-year drop of ~71% in profit shows how much the combination of lower prices and higher costs hurt Tesla’s profitability. Earnings per share (EPS) is net income divided by the number of shares, a common way to measure profit for shareholders. Tesla’s GAAP EPS for Q1 was $0.12 (12 cents per share), down from $0.41 a year ago (Tesla's Q1 Earnings Miss Estimates). On an adjusted basis (which excludes some one-time items and non-cash expenses), EPS was $0.27, which still fell short of analysts’ expectation of about $0.39–0.42 (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV) (Tesla (TSLA) earnings report Q1 2025 - CNBC).** In summary, Tesla remained profitable, but barely – its profit margins have significantly narrowed compared to previous periods.
Key terms explained: Revenue is the total sales dollars. Gross margin is gross profit divided by revenue – it shows what percentage of revenue is left after paying direct production costs. Operating margin is operating profit divided by revenue – it indicates overall efficiency after all operating costs. A shrinking margin means Tesla is keeping less of each dollar in sales as profit. Tesla’s gross and operating margins in Q1 2025 were unusually low for Tesla, indicating a tougher quarter.
Balance Sheet Highlights (Assets, Liabilities, and Cash)
Tesla’s balance sheet remained very strong in Q1 2025. The balance sheet is like a snapshot of what the company owns and owes at the end of the quarter. One standout figure is Tesla’s cash position. Tesla’s combined cash, cash equivalents, and investments grew to $37.0 billion by the end of Q1 (). This is up about $0.4 billion from the end of 2024, and 38% higher than a year ago (). In simple terms, Tesla has a large war chest of cash and liquid assets, which provides a cushion for the company to weather tough periods or fund new projects.
It’s also worth noting that Tesla’s inventory of unsold cars increased in Q1, since it produced about 362,000 vehicles but delivered around 336,000 (Tesla First Quarter 2025 Production, Deliveries & Deployments). This means roughly 26,000 more cars were added to inventory. Building inventory uses cash (cars that aren’t sold yet tie up money in materials and production costs), which partially explains why last year’s Q1 operating cash flow was so low. However, Tesla’s current inventory levels are not a major concern given the company’s cash cushion and the expectation that those cars will be sold in coming months.
On the liabilities side, Tesla carries relatively little debt compared to its cash. The company’s strong cash generation in recent years allowed it to pay down most high-interest debt. As a result, Tesla’s net cash (cash minus debt) is very positive, unlike many legacy automakers that carry significant debt. Having more cash than debt makes Tesla’s balance sheet very robust. It reduces financial risk and interest expenses, and gives Tesla flexibility to invest in new factories or products.
In summary, the balance sheet shows Tesla is in solid financial health, with a growing cash pile and manageable liabilities. This strong financial position is a positive sign, as it means Tesla can afford to continue its expansion (building new factories, R&D on new models, etc.) even if profits are currently under pressure.
Cash Flow: How Much Cash is Tesla Generating?
Despite lower profits, Tesla generated positive cash flow in Q1 2025, meaning it brought in more cash than it spent during the quarter. There are three main parts of cash flow: operating, investing, and financing. Here we focus on operating cash flow and free cash flow, which show the cash from running the business and after capital investments.
Operating Cash Flow: This is the cash Tesla’s core business produced from day-to-day operations (selling cars and services, minus cash expenses). In Q1 2025, operating cash flow was $2.2 billion (). This is a dramatic improvement from a year ago – in Q1 2024, operating cash flow was almost negligible (only about $242 million) (). The jump is partly because Q1 2024’s cash flow was unusually low (Tesla was building up a lot of inventory and receivables then, which used cash). By Q1 2025, Tesla managed its working capital better and scaled back inventory growth, so more of its earnings translated into cash. An operating cash flow of $2.2B means Tesla’s business is still a cash-generating machine, even with thinner profit margins.
Capital Expenditures (Capex): Capital expenditures are investments in long-term assets like new factories, equipment, and other infrastructure. In Q1 2025, Tesla’s capex was about $1.49 billion (). Interestingly, this is 46% lower than a year ago (). It appears Tesla temporarily scaled back capex this quarter, or it may have just timed certain projects differently. (Tesla noted that starting this quarter, it now counts solar panel installations in capex, and even with that, the number was lower ().) Lower capex means Tesla spent less on building factories or other big projects in Q1. This could be due to the completion of major build-outs (like new factory lines) or simply a timing issue where more spending will occur in later quarters.
Free Cash Flow: Free cash flow is operating cash flow minus capex – essentially the cash the company has left after investing in its business. In Q1 2025 Tesla had positive free cash flow of $0.7 billion (about $664 million) (). This is a big swing from Q1 2024’s negative free cash flow (Tesla had spent about $2.6 billion more than it generated in cash in the year-ago quarter) (). Positive free cash flow means Tesla’s operations are bringing in enough cash to cover its investments, with some left over. In other words, even after paying for new factories and equipment, Tesla added roughly $0.7B to its cash pile in the quarter. This helps explain how its cash balance grew to $37B.
Overall, Tesla’s Q1 cash flow shows that the company is living within its means – it’s not burning cash to fund its growth right now. In fact, Tesla increased its cash hoard. This is a healthy sign because it indicates Tesla can fund expansion (like the upcoming Cybertruck production and other projects) from the cash generated by the business itself, without needing to raise external funds.
Key terms explained: Operating cash flow is cash generated from normal business operations. Free cash flow is the remaining cash after the company spends on long-term investments (capex). Positive free cash flow is good – it means the company is self-funding and adding to its cash reserves. Tesla’s ability to maintain positive free cash flow this quarter, despite lower profits, shows strong financial discipline and the benefit of past investments that are now paying off.
What Went Well in Q1 2025 (Positives)
Several aspects of Tesla’s Q1 2025 performance were encouraging despite the overall profit decline:
Energy Business Growth: Tesla’s energy division was a standout performer. Energy storage deployments hit a record 10.4 GWh in Q1 (Tesla First Quarter 2025 Production, Deliveries & Deployments), driving energy revenue up 67% year-over-year to $2.7 billion (). This fast growth in selling battery packs (like Megapacks for utilities and Powerwalls for homes) is diversifying Tesla’s revenue. It helped offset some of the decline in automotive sales. A growing energy segment is good for Tesla’s long-term story, as it is becoming more than just a car company.
Services & Other Revenue Up: Tesla also saw 15% growth in services and other revenues to about $2.64B (). This includes things like paid repairs, maintenance plans, used car sales, and Supercharging fees. Growth here indicates Tesla’s expanding customer base is generating more after-sale income. For example, more Teslas on the road means more service visits and more usage of Tesla’s charging network (which can be revenue-generating).
Positive Free Cash Flow: As discussed, Tesla managed to produce positive free cash flow of $0.7B (). This is a significant positive because it shows Tesla can fund itself comfortably. The company’s cash pile grew to $37B, which provides security and flexibility. Generating cash while investing in growth is a sign of a financially healthy business.
Maintained Profitability: Even at much lower margins, Tesla remained profitable (GAAP net profit of $409M) (Tesla's Q1 Earnings Miss Estimates). Many automakers experience losses when they face volume and pricing pressure, but Tesla managed to stay in the black. This is partly thanks to its cost controls and additional income streams (like regulatory credit sales, which were $692M in Q4 2024 (Tesla’s profits slide over 70 percent in the fourth quarter | The Verge) – Q1 2025 credits not explicitly stated yet, but Tesla often sells credits that boost profit). The ability to still post a profit in a tough quarter is a testament to Tesla’s efficient operations.
Production of New Model Y Ramp: According to Tesla, the new version of the Model Y is ramping up well after the factory retooling (Tesla First Quarter 2025 Production, Deliveries & Deployments). While this hurt Q1 production, it’s a positive sign for future quarters – a more efficient production line or updated model can improve output and potentially margin later in the year. Tesla noted the new Model Y ramp is “outpacing all past ramps,” indicating strong execution once the lines came back online ().
Continued Investment in Growth: Tesla didn’t halt its future plans. It confirmed that new, more affordable models are on track for start of production in the first half of 2025 (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV). It’s positive that despite short-term headwinds, Tesla is still pushing forward with product development (like the much-anticipated low-cost model and the Cybertruck). This balance of cost-cutting (Musk even referred to himself as “chief cost-cutter”) and innovation is aimed to ensure long-term growth.
In summary, Tesla’s diversification and financial resilience shone through: the booming energy segment, service revenue, and strong cash flow are healthy signs. Tesla is preparing for the future (new models, new factories) without losing its footing financially.
What Went Poorly in Q1 2025 (Challenges)
Q1 2025 was a challenging quarter for Tesla, and several negatives stood out:
Decline in Vehicle Deliveries: Tesla’s vehicle deliveries dropped 13% year-over-year (Rivian and Tesla struggle with weakening demand in Q1) – a rare occurrence for a company that has been growing rapidly for years. Delivering ~336k cars vs ~387k a year ago is a significant fall. Part of this was planned (due to factory retooling downtime), but it also signals weaker demand growth. In fact, even with big price cuts, Tesla couldn’t match last year’s Q1 sales volume. This drop in deliveries is a red flag because Tesla’s growth story relies on selling more cars each year.
Revenue Missed Expectations: The $19.3B in revenue fell well short of analyst expectations (~$21B) (Tesla misses on Q1 results but claims cheaper EVs are still on track ...). It was also slightly below the revenue Tesla made in Q1 2024 (Tesla misses on Q1 results but claims cheaper EVs are still on track ...). Missing expectations by such a margin suggests that the demand or average price was lower than anticipated on Wall Street. It indicates the impact of price cuts was larger than analysts guessed – cutting prices trimmed revenue more than the higher volume (which didn’t fully materialize) could compensate.
Compressed Profit Margins: Tesla’s gross margin (16.3%) and operating margin (2.1%) are both much lower than in recent quarters (). Gross margin was down ~1 percentage point year-on-year and far below the ~25–30% gross margins Tesla had in 2022. The operating margin fell by 3.4 percentage points (). Such margin compression means Tesla is making far less profit per vehicle. The price cuts – while good for consumers – heavily eroded profitability. Tesla essentially traded margin for volume, and in Q1 volume didn’t even grow, making the margin sacrifice more painful. This is a concern because Tesla’s premium valuation has been partly based on its industry-leading margins, which are now shrinking toward traditional automaker levels.
Net Income Plunged: Profits dropped dramatically. GAAP net income of $0.4B was 71% lower than last year’s $1.4B (Tesla's Q1 Earnings Miss Estimates). Even on an adjusted basis, profits fell ~40%. Earnings per share missed the mark at $0.27 (adjusted) vs about $0.42 expected (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV). Such a profit drop shows Tesla is currently selling cars at much thinner profit to maintain momentum. For investors, this was a disappointment and suggests Tesla’s earnings growth is on pause or even reversing in the short term.
Automotive Revenue Down 20%: The core automotive sales revenue fell by one-fifth year-over-year (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV), which is quite steep. This was due to both fewer deliveries and lower prices. It highlights a challenge: weakening demand or competition. Tesla had to lower prices to stimulate orders (due to competition from other EVs and higher interest rates making car loans costly), but even then, sales fell. This double hit (lower volume and lower price) is a worst-case for revenue. It implies Tesla might be facing a demand ceiling at previous price points, forcing it into a price war that hurts revenue and profit.
Analysts’ Concerns and Sentiment: The earnings miss led to some negative reactions from analysts and investors. Coming into the earnings, there were multiple price target cuts by Wall Street analysts (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV), and even some public officials (state treasurers) raised concerns about Tesla’s direction and Elon Musk’s focus (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV). Tesla’s stock initially dropped on the earnings news (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV). The broader concern is that Tesla might be entering a more mature phase of growth where it can no longer increase sales without sacrificing profit. There is also worry that Elon Musk’s involvement in other ventures (and even politics) could distract from Tesla’s challenges. In short, investor sentiment was dented by the Q1 results, as it became clear Tesla is not immune to economic pressures and competition.
Production/Logistics Inefficiencies: Because production exceeded deliveries (362k produced vs 337k delivered), Tesla added inventory. Some of this was planned (to smooth distribution), but if inventory builds too much, it can indicate cars aren’t finding buyers as fast as they’re made. Also, downtime for retooling meant lost production that can never be recovered. These operational hiccups show that Tesla’s push to introduce new models (refreshed Model Y, upcoming Cybertruck) can cause short-term pain in the form of lost output and underutilized factories during changeovers (Tesla First Quarter 2025 Production, Deliveries & Deployments).
In summary, Q1 exposed some cracks: demand didn’t keep up without price cuts, and those cuts eroded Tesla’s famed profitability. Tesla is navigating a more competitive market now, and the financial results reflected that tension.
Tesla Q1 2025 vs Expectations and Last Year
To put Tesla’s Q1 2025 performance in context, the table below compares key metrics to what analysts expected and to the year-ago quarter:
Metric (Q1 2025) Actual Analyst Forecast Q1 2024 Actual Vehicles Delivered 336,681 (Rivian and Tesla struggle with weakening demand in Q1) ~377,000 expected (Rivian and Tesla struggle with weakening demand in Q1) ~387,000 (Rivian and Tesla struggle with weakening demand in Q1) Total Revenue $19.34 billion (Tesla's Q1 Earnings Miss Estimates) ~$21–21.4 billion expected (Tesla misses on Q1 results but claims cheaper EVs are still on track ...) $21.3 billion (Tesla's Q1 Earnings Miss Estimates) Gross Margin (GAAP) 16.3% () (not provided, but lower than expected) 17.4% () Operating Margin (GAAP) 2.1% () (not provided) 5.5% () Net Income (GAAP) $0.41 billion (Tesla's Q1 Earnings Miss Estimates) – (EPS est. ~$0.42) (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV) $1.39 billion (Tesla's Q1 Earnings Miss Estimates) Earnings per Share $0.12 GAAP; $0.27 non-GAAP (Tesla's Q1 Earnings Miss Estimates) ~$0.42 (expected, GAAP) (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV) $0.41 GAAP; $0.45 non-GAAP (Tesla's Q1 Earnings Miss Estimates)
Table: Tesla Q1 2025 results versus analyst expectations and Q1 2024. Tesla missed on revenue and earnings versus consensus estimates, and saw declines against the prior year.
As shown above, Tesla fell short of expectations on both top line and bottom line. Revenue was about $2 billion lower than forecasts (analysts expected roughly $21+ billion, Tesla delivered $19.3B) (Tesla misses on Q1 results but claims cheaper EVs are still on track ...). Earnings per share came in about 15 cents below forecasts (adjusted EPS $0.27 vs ~$0.42 expected) (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV). Vehicle deliveries undershot estimates by ~40k units. Compared to Q1 2024, revenue was slightly lower, and profit was dramatically lower. The only area Tesla improved year-over-year was in cash flow (not shown in table) and parts of the energy business; otherwise, it was a down quarter relative to the high bar Tesla set in the prior year.
Comparison to Tesla’s Previous Quarters (Recent Trends)
It’s also useful to see how Q1 2025 stacked up against the prior quarter (Q4 2024) and Tesla’s performance over the last year:
Sequential Decline from Q4 2024: It’s typical for Tesla’s first quarter to be weaker than the fourth quarter (due to seasonality and car buyer behavior). Even so, the drop was notable. Q4 2024 had record deliveries of 495,000 vehicles (Tesla Fourth Quarter 2024 Production, Deliveries & Deployments | Tesla Investor Relations) and revenue of $25.7B (Tesla’s profits slide over 70 percent in the fourth quarter | The Verge), whereas Q1 2025 saw 336,681 deliveries and $19.3B revenue. That’s a 33% drop in deliveries and ~25% drop in revenue quarter-over-quarter. Some of this was expected seasonal slowdown plus the intentional production halts for the Model Y update (Tesla First Quarter 2025 Production, Deliveries & Deployments). Profit fell off sequentially as well – Q4 2024 net income was $2.32B (Tesla’s profits slide over 70 percent in the fourth quarter | The Verge) (boosted by year-end sales and some one-time benefits), versus only $0.41B in Q1 2025. So, Q1 was weaker across the board relative to the strong holiday quarter that preceded it.
Year-Over-Year vs Q1 2024: As detailed, Q1 2025 was softer than Q1 2024. One year ago, in Q1 2024, Tesla’s revenue was about $21.3B (Tesla's Q1 Earnings Miss Estimates) and gross margin ~17.4% (). That quarter came after Tesla had initiated price cuts in early 2024, but it still benefited from growing volume (Tesla was expanding deliveries rapidly through 2024). By Q1 2025, however, the combination of an even more competitive market and production hiccups resulted in lower volume and lower margin than the prior year’s quarter. It’s the first time in recent memory that Tesla’s year-over-year growth turned negative on such key metrics (deliveries, revenue, profit). This marks a potential inflection point – Tesla may be exiting its phase of breakneck growth and entering a phase of more modest growth where it can occasionally see declines if it’s not careful.
Trend of Margin Compression: Looking at the past few quarters, there’s a clear trend of margin compression. In early 2024, Tesla’s gross margins were around 19% (). By Q4 2024 they had dipped to 16.8%, and now Q1 2025 is 16.3% (). Similarly, operating margin was around 10% at its peak in mid-2024 and has slid to 2% now (). This downward trend reflects Tesla’s strategic shift to prioritize growth and volume (and perhaps preparation for future competition) by lowering prices. Elon Musk has often said he’s willing to accept lower profits in the short term to keep Tesla vehicles affordable and multiply the customer base. We see that philosophy playing out in the numbers: Tesla’s recent quarters show shrinking profits per car, even as the company invests in future growth.
Cash Flow and Investments Trend: On a positive note, Tesla’s cash flow has improved relative to early 2024. Q1 2024 saw a big negative free cash flow (as Tesla was building new factories like in Texas and Germany). Since then, Tesla has scaled up those operations, and capex needs have been moderate. The result: the last few quarters (Q3 2024, Q4 2024, Q1 2025) all had healthy free cash flow (e.g. Q4 2024 FCF was $2.0B, and Q1 2025 FCF $0.7B) (). So while accounting profits are down, the cash generation trend is actually stable or improving compared to a year ago, as Tesla reaps benefits from past investments.
In essence, Q1 2025 underscores a shift in Tesla’s trajectory. 2024’s quarters (especially Q2 and Q3 2024) were about maintaining high growth with some profit sacrifice; Q4 2024 had a strong finish with record sales; now Q1 2025 reveals the cost of Tesla’s push for volume: lower margins and even a dip in volume itself. Investors and analysts will be watching whether this is a temporary dip (due to one-off factors like retooling) or a sign of a new normal where Tesla must fight harder for each sale.
Tesla vs Key Competitors (Ford, GM, Rivian)
Tesla’s results can be better understood in context by comparing them to other automakers. We’ll look at legacy giants Ford and GM, which are increasingly investing in EVs, and EV startup Rivian. Key differences emerge in sales volume and profitability:
Vehicle Sales (Deliveries): Tesla utterly dominates in pure EV sales volume. In Q1 2025 Tesla delivered 336,681 EVs (Rivian and Tesla struggle with weakening demand in Q1) worldwide. By contrast, Ford’s EV sales were about 20,000 units in Q1 2025 (an ~82% jump year-over-year, including Mustang Mach-E and F-150 Lightning) (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges). General Motors’ EV deliveries are still very limited – GM hasn’t officially reported a global EV figure for Q1, but it’s likely only on the order of a few thousand (GM has been ramping up new models like the Cadillac Lyriq and Hummer EV slowly, and it paused its Chevy Bolt EV production). Rivian, being a startup, delivered just 8,640 vehicles in Q1 (Rivian and Tesla struggle with weakening demand in Q1), which is 40 times fewer than Tesla. The table below highlights the gap:
Q1 2025 EV Deliveries (approx.) Tesla (all EVs) Ford (EV division “Model e”) GM (Ultium-based EVs) Rivian (EV startup) Vehicles delivered 336,681 (Rivian and Tesla struggle with weakening demand in Q1) ~20,000 (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges) Few thousand (est.) 8,640 (Rivian and Tesla struggle with weakening demand in Q1)
Table: EV vehicle deliveries in Q1 2025 – Tesla sells an order of magnitude more EVs than legacy competitors, and far more than Rivian.
Tesla’s EV sales are greater than Ford, GM, and Rivian combined by a wide margin. This scale advantage is important because it also translates to manufacturing efficiency and brand presence. However, Tesla’s Q1 delivery decline (-13% YoY) contrasts with Ford’s EV growth (+82% YoY for Ford’s EV sales) (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges) – this shows competitors are growing from a smaller base. Tesla will face more competition in the EV space as these companies ramp up.
Revenue and Business Mix: Ford and GM are still mostly selling gasoline vehicles, so their total revenues are much higher than Tesla’s, but their EV revenues are smaller. For Q1 2025, Ford’s total revenue was about $42.8B (up ~3% YoY) (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges) – over double Tesla’s revenue – but that includes millions of trucks and SUVs with internal combustion engines. Importantly, Ford’s EV segment (“Model e”) made only $0.1B in revenue in Q1 (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges) – extremely small next to Tesla’s $19.3B total. GM’s total revenue in Q4 2024 was $47.7B (General Motors (GM) Q4 2024 Earnings: Key financials and ...); Q1 tends to be a bit lower seasonally, but still in the tens of billions range (mostly from traditional vehicle sales). Rivian’s revenue, by comparison, was ~$1.7B in Q4 2024 (Rivian (RIVN) hit its gross profit goal in Q4, now what? - Electrek); it likely had around or under $1B in Q1 2025 given fewer deliveries (exact Q1 figure not yet reported). So while Tesla’s revenue fell this quarter, it’s still the leader among EV-focused revenue – no other automaker comes close to generating $19B from EVs in one quarter.
Profitability: This is where the contrast is most striking:
Tesla vs Ford: Tesla made a small profit in Q1, whereas Ford’s EV division is deeply in the red. In Q1 2025, Ford’s Model e (EV) unit lost about $1.32 billion while selling those ~20k EVs (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges). That means Ford is spending far more to build its EVs than it earns from selling them (a glaring lack of EV profitability). Ford’s overall business was slightly profitable – they reported an adjusted profit (EBIT) in their other divisions (Ford Pro earned $3B EBIT from commercial vehicles; Ford Blue earned $0.9B from traditional cars) (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges). On a net basis, Ford had about $0.4B in net income in Q1 2025 (roughly similar to Tesla’s net, interestingly) – but that profit came entirely from gas-powered and commercial vehicle sales, not from EVs. In short, Tesla’s EV business is profitable; Ford’s is not. Ford is essentially using profits from pickup trucks to subsidize EV development. Tesla, having a several-year head start in EV scale, still maintains a positive margin on EVs (though smaller than before).
Tesla vs GM: General Motors has not broken out Q1 2025 EV financials at the time of writing, but based on earlier data, GM’s electric vehicle operations have also been generating losses. GM’s Q4 2024 earnings saw a one-time write-down of $1.5B for its Cruise autonomous unit and other charges, leading to a $3.0B net loss in Q4 (GM releases full-year and fourth-quarter 2024 results and 2025 ...). Excluding special items, GM’s core auto business is profitable (Q4 adjusted EBIT $2.5B) (GM releases full-year and fourth-quarter 2024 results and 2025 ...), but that profit is driven by combustion vehicle sales (popular models like Silverado trucks and large SUVs). GM’s EV sales (Lyriq, Hummer EV, a few thousand units) are still too small to contribute meaningfully – if anything, they are likely a drag on margins due to high production costs at low volume. So, like Ford, GM’s traditional vehicles fund its EV ambitions. Tesla, by contrast, is an all-EV company that is self-funding through EV sales.
Tesla vs Rivian: Rivian is much younger and is still in its growth phase where losses are expected. However, Rivian showed progress: in Q4 2024 it achieved its first-ever positive gross profit ($170M) (Rivian Releases Fourth Quarter and Full Year 2024 Financial Results), meaning at least the direct cost of building its trucks was finally covered by the selling price. But Rivian still had a net loss of $743M in Q4 2024 (Rivian (RIVN) earnings Q4 2024 - CNBC). For full-year 2024, Rivian lost about $4.7B (Rivian reports record-high gross profit of $170M in Q4). We can expect Rivian to post another large loss in Q1 2025 since deliveries fell. When comparing Tesla and Rivian, Tesla is far ahead in the experience curve – Tesla went through years of losses in the 2010s and now has consistent profits, whereas Rivian in 2025 is where Tesla was perhaps around 2017 or 2018: growing revenue quickly but not yet profitable. The key point: Tesla’s 16% gross margin () and positive net income look excellent next to Rivian’s negative margins and losses. Even Tesla’s reduced 2% operating margin vastly outperforms Rivian’s roughly -40% operating margin (Rivian’s net loss is enormous relative to its revenue).
In summary, Tesla leads on EV volume and is the only one of these peers making money on EVs. Ford and GM are much bigger companies by revenue, but their profits come from legacy segments, while their EV arms are bleeding cash. Rivian is still in heavy investment mode with big losses. Tesla’s gross profit per vehicle, even though reduced, is likely still higher than Ford’s or GM’s on their EVs (Ford had negative ~$66k operating loss per EV in Q1 – $1.3B loss on 20k EVs – whereas Tesla earned a small operating profit overall, equating to about $1.2k operating profit per vehicle). This gap underscores Tesla’s manufacturing efficiency and pricing power advantage in the EV space, though that advantage has narrowed as Tesla cuts prices.
Market Share: In the United States, Tesla remains the dominant EV player by market share, although its share has been slowly eroding as more competitors enter. In Q1 2025, U.S. EV sales were about 7.5% of all U.S. auto sales (Electric Vehicle Sales and Market Share (US - Q1 2025 Updates)). Tesla still accounts for the majority of those EV sales. Ford’s Mach-E and Lightning, GM’s EVs, and Rivian’s trucks collectively are growing but still make up a smaller portion of the EV market relative to Tesla’s models (Model 3/Y/S/X). However, Tesla’s year-over-year U.S. sales were down ~8.6% in Q1 according to one report (Tesla's US sales are worse than what is reported, here's ... - Electrek), which shows that competitors are capturing incremental growth. Tesla will face even stiffer competition in 2025 as more models (from GM’s Chevy Blazer EV to Ford’s upcoming EV pickups and numerous offerings from Hyundai, VW, etc.) hit the market.
To compete, Tesla has been leveraging its cost lead to cut prices – a strategy that impacts its margins (as we saw this quarter) but aims to undercut rivals. Ford, for instance, responded by slashing EV prices by 17% and offering financing deals to move its EV inventory (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges), which hurt Ford’s margins further. This price competition is good for consumers but puts pressure on all players’ financials. Tesla’s hope is that its scale and technology lead (and perhaps the forthcoming next-gen vehicle platform which promises a lower production cost) will allow it to stay ahead of legacy automakers that are still losing money on every EV sold.
Bottom line: Tesla’s Q1 2025 may have been weak by its own historical standard, but relative to competitors, Tesla is still in an enviable position. It sells many more EVs than any other company, and it makes money doing so, which Ford and Rivian cannot claim yet. Tesla’s margins, while thinner now, are still better than the losses competitors endure on EVs. That said, the competition is catching up in volume and willing to absorb losses for now. Tesla will need to execute on further cost reductions (to boost margins back up) and new product introductions (to re-ignite sales growth) to maintain its lead as the EV market expands. As Tesla itself noted, 2025 will be about a “return to growth” with a focus on new models and ramping production efficiently (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV), but the rate of growth will depend on factors like economic conditions and how fast they can scale new factories. The Q1 2025 results serve as a wake-up call that the road ahead, while promising, will be more financially challenging and competitive than the road behind.
Sources
Tesla, Inc. – Q1 2025 Financial Results (Investor Update) – official figures for deliveries, financials, and commentary () (Tesla's Q1 Earnings Miss Estimates).
Tesla Q1 2025 Earnings Press Release and Shareholder Deck – details on revenue, profit, margins, and business highlights (Tesla Misses Q1 EPS by 15c, Automotive Revenue Falls 20% to $14 Billion – EV) ().
Reuters – “Ford projects mounting EV losses for 2025, Q4 profit up” – Ford’s Q4 2024 results and EV loss outlook (Ford projects mounting EV losses for 2025, Q4 profit up | Reuters) (Ford projects mounting EV losses for 2025, Q4 profit up | Reuters).
Ainvest (analysis) – “Ford Q1 2025: Mixed Bag…” – breakdown of Ford’s Q1 performance by division (EV losses of $1.3B on $100M revenue) (Ford’s Q1 2025 Earnings: A Mixed Bag of Progress and Persistent Challenges).
eMarketer – “Rivian and Tesla struggle with weakening demand in Q1” – EV delivery figures (Tesla 336k vs Rivian 8.6k, with Tesla missing forecasts) (Rivian and Tesla struggle with weakening demand in Q1).
Investopedia – “Tesla’s Q1 Earnings Miss Estimates” – summary of Tesla’s Q1 2025 results vs last year and analyst expectations (Tesla's Q1 Earnings Miss Estimates) (Tesla's Q1 Earnings Miss Estimates).
The Verge – “Tesla’s profits slide over 70% in the fourth quarter” – context on Tesla Q4 2024 results and margins, including analyst revenue expectations and credit sales (Tesla’s profits slide over 70 percent in the fourth quarter | The Verge) (Tesla’s profits slide over 70 percent in the fourth quarter | The Verge).
Yahoo Finance – coverage of Tesla’s Q1 2025 miss (revenue $19.34B vs $21.43B expected, deliveries short of forecast) (Tesla misses on Q1 results but claims cheaper EVs are still on track ...) (Rivian and Tesla struggle with weakening demand in Q1).
Tesla Investor Relations – production/delivery reports (Q1 2025: 336,681 delivered; explanation of Model Y line downtime) (Tesla First Quarter 2025 Production, Deliveries & Deployments); Tesla 2024 annual figures for context (Tesla Fourth Quarter 2024 Production, Deliveries & Deployments | Tesla Investor Relations).
Rivian Investor Release – Q4 2024 results (first gross profit, net loss $743M) (Rivian Releases Fourth Quarter and Full Year 2024 Financial Results) (Rivian (RIVN) earnings Q4 2024 - CNBC).