Tesla, Inc. stock research
FY2025 Q2
Tesla (TSLA) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased sequentially from the prior quarter, while cost of revenue also rose. Gross margin improved compared to the previous quarter but was lower than the same quarter one year ago.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased sequentially from the prior quarter, while cost of revenue also rose. Gross margin improved compared to the previous quarter but was lower than the same quarter one year ago.
- The relative movement of cost of revenue compared to revenue was the most significant factor affecting gross margin. Sequentially, cost of revenue grew at a slower pace than revenue, supporting margin expansion; year-over-year, revenue declined more than cost of revenue, pressuring margins.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased by a larger proportion than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as revenue declined more sharply than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.2%
Gross profit
$3.9B
Revenue
$22.5B
Cost of revenue
$18.6B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $25.2B | $5.0B | $20.2B | 19.8% |
| Dec 31, 2024 | $25.7B | $4.2B | $21.5B | 16.3% |
| Mar 31, 2025 | $19.3B | $3.2B | $16.2B | 16.3% |
| Jun 30, 2025 | $22.5B | $3.9B | $18.6B | 17.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.9 pts
Year-over-year change
Jun 30, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relative movement of cost of revenue compared to revenue was the most significant factor affecting gross margin. Sequentially, cost of revenue grew at a slower pace than revenue, supporting margin expansion; year-over-year, revenue declined more than cost of revenue, pressuring margins.
Compared to the immediately preceding quarter, gross margin improved as revenue increased by a larger proportion than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as revenue declined more sharply than cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, and note the company's stated flexibility to adjust capital and operating expenditures in response to changes in operational scale.