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Tesla’s Q3 2025 update highlights “record vehicle deliveries globally” and “record energy storage deployments,” which together drove “both record revenue and free cash flow generation in the quarter.” The company reported $1.6 billion GAAP operating income, $1.4 billion GAAP net income, and $1.8 billion non-GAAP net income, while operating cash flow reached $6.2 billion and free cash flow nearly $4.0 billion, lifting total cash and investments to $41.6 billion.

Tesla emphasized that it “launched the Model YL and Model Y Performance and further expanded our vehicle offering with the Model 3 and Model Y Standard, our most affordable vehicles.” It also introduced the Megapack 3 and Megablock, designed to “simplify large battery installations by reducing cost and time to deploy.” Management stated, “We believe our scale and cost structure will enable us to navigate the shifting market dynamics across the globe more effectively than our peers”.

Total revenue rose 12% year-over-year to $28.1 billion, supported by “increase in vehicle deliveries,” “growth in Energy Generation and Storage,” and “growth in Services and Other.” Operating income, however, “decreased 40% YoY to $1.6 billion,” reflecting “increase in operating expenses … driven by SG&A, AI and other R&D projects” as well as “lower one-time FSD revenue recognition”.

The company underscored progress in autonomous and AI initiatives, noting it began deploying “v14 of FSD (Supervised) … bringing a large portion of the Robotaxi FSD model to consumers,” and that it “launched our Bay Area ride-hailing service.” Tesla expanded its AI training compute capacity “bringing Cortex to a total of 81 k H100 equivalents,” and announced a semiconductor-manufacturing partnership with Samsung.

Energy operations also hit records: “We achieved our highest quarterly energy storage deployments, bolstered by the continued ramp of Megafactory Shanghai and another record quarter of Powerwall deployments.” Gross profit rose “to a record $1.1 billion.” Tesla also unveiled the Megablock, “a pre-engineered, medium-voltage battery that integrates four Megapack 3s” for faster, lower-cost grid-scale installation.

Looking ahead, management wrote, “We have sufficient liquidity to fund our product roadmap … long-term capacity expansion … and other expenses.” It expects “hardware-related profits to be accompanied by an acceleration of AI, software and fleet-based profits.” Upcoming milestones include Cybercab, Tesla Semi, and Megapack 3 entering volume production in 2026, with Optimus production lines being installed in anticipation of scale manufacturing.

You can read the entire update here:

Tesla – Q3 2025 Update

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