Tesla, Inc. stock research
FY2025 Q3
Tesla (TSLA) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved versus the prior quarter but weakened relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved versus the prior quarter but weakened relative to the same quarter one year earlier.
- Gross profit grew faster than revenue from the prior quarter, driving the sequential improvement in gross margin. The year-over-year decline in gross margin indicates that cost of revenue increased at a higher rate than revenue over the longer period.
- Compared with the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.0%
Gross profit
$5.1B
Revenue
$28.1B
Cost of revenue
$23.0B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
-1.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $28.1B | $5.1B | $23.0B | 18.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.8 pts
Year-over-year change
Sep 30, 2024
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than revenue from the prior quarter, driving the sequential improvement in gross margin. The year-over-year decline in gross margin indicates that cost of revenue increased at a higher rate than revenue over the longer period.
Compared with the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as the year-over-year margin compression signals a shift in that relationship.