Tesla (TSLA) Financials

Tesla, Inc. has shown consistent financial growth over the last four years through 2025, with notable improvements in revenue, net income, and operational cash flow, alongside significant investments in property, plant, and equipment. Here is a summary of the key financial trends and observations:

• Strong Revenue Growth: Tesla’s operating revenue increased from approximately $18.8 billion in Q1 2022 to about $22.5 billion in Q2 2025, showing a clear upward trend in sales and operations.
• Increasing Net Income: Net income grew substantially from $3.3 billion in Q1 2022 to $1.19 billion in Q2 2025 on a quarterly basis, with peaks such as $7.9 billion in Q4 2023, indicating robust profitability improvements over time despite some fluctuations.
• Healthy Gross Profit Margin: Tesla consistently maintains a strong gross profit margin, with gross profit generally increasing alongside revenue and operating income remaining positive and growing.
• Operating Cash Flow Strength: Net cash from continuing operating activities rose from $2.4 billion in Q1 2022 to $2.54 billion in Q2 2025, indicating improving operational cash generation capacity.
• Substantial Capital Investments: Continuous heavy investments in property, plant, and equipment (CAPEX) are evident, including $2.39 billion in Q2 2025 and multiple billions in prior quarters, highlighting Tesla’s commitment to expanding production capacity and infrastructure.
• Improvement in Total Assets and Equity: Total assets increased significantly from approximately $66 billion in Q1 2022 to $128.57 billion in Q2 2025, with total common equity rising to $77.3 billion in Q2 2025, showing a strengthening balance sheet.
• Rising Inventories: Inventories have grown to $14.57 billion in Q2 2025, which could imply Tesla is building stock in response to expected demand or supply chain considerations, but warrants monitoring for any potential overstock risks.
• Managing Debt Levels: Tesla’s total liabilities increased from roughly $30.6 billion in Q1 2022 to about $50.5 billion in Q2 2025, with both short-term and long-term debt rising. However, the company actively repays debt and issues new debt in a managed manner, as seen by repayments of $2.8 billion in Q2 2025.
• Dividend Payments Small but Present: Tesla pays modest dividends ($14 million in Q2 2025) reflecting capital return to shareholders, though dividends remain a small fraction of net income.
• Significant Net Cash Outflows from Investing Activities: The company’s investing activities consume substantial cash, with net outflows of $2.94 billion in Q2 2025 due to heavy investments and investment purchases outpacing sales, pressuring free cash flow.

Summary: Tesla’s financials show impressive growth in revenue, income, and asset base over the recent years, supported by strong operating cash flow and large-scale capital investments. While increasing inventories and investing cash outflows require attention, the company remains in a robust position financially with expanding operations and solid shareholder equity.