Tesla stock fell nine percent during Thursday morning trading after the electric vehicle manufacturer posted its worst revenue decline in approximately ten years. The company earned $22.496 billion during the second quarter of 2025, surpassing analyst predictions of $21.934 billion. Annual revenue fell 11.78 percent compared to the previous year. Free cash flow decreased to $146 million while the company's cash reserves declined for the first time in several years. Increased tariff expenses added approximately $300 million to operational costs.
The automaker achieved adjusted earnings per share of $0.40, beating consensus estimates of $0.39. However, approximately $400 million from other income sources contributed significantly to this performance. Bitcoin revaluation gains accounted for $282 million of these earnings. Tesla maintains 11,509 Bitcoin tokens worth $1.233 billion at quarter's end. The company's new affordable vehicle represents a simplified Model Y variant rather than an entirely new design.
The automaker achieved adjusted earnings per share of $0.40, beating consensus estimates of $0.39. However, approximately $400 million from other income sources contributed significantly to this performance. Bitcoin revaluation gains accounted for $282 million of these earnings. Tesla maintains 11,509 Bitcoin tokens worth $1.233 billion at quarter's end. The company's new affordable vehicle represents a simplified Model Y variant rather than an entirely new design.
