3 Positives from Tesla’s Q2 2025 Shareholder Replace?

We’ve carefully lined Tesla’s gross sales decline, and we’ve mentioned the potential for an ongoing gross sales decline at size. Naturally, a continued decline in gross sales might considerably damage Tesla’s funds. Additionally, it’s exhausting — or unimaginable — to justify the corporate’s market cap if the corporate isn’t going to return to quick, or hyperfast, progress.

Maybe we’ll write extra about Tesla’s gross sales and monetary tendencies now that the corporate’s Q2 2025 shareholder letter is out, however on condition that we’ve written about that a lot, it was really three potential optimistic notes from the shareholder letter that caught my eye. Are they an indication of life, hope, and potential for Tesla? Or are they extra of a shiny object and distraction? Properly, let’s get to what these three positives are and I’ll allow you to resolve — I don’t know.

1. First Builds of Reasonably priced Tesla Mannequin in June

A brand new, extra reasonably priced Tesla mannequin was supposed to enter manufacturing in June, a missed milestone that we lined a few occasions not too long ago. Nevertheless, the corporate did observe within the shareholder letter that first builds of the mannequin had been created in June. Moreover, Tesla is planning on quantity manufacturing of the mannequin within the second half of 2025.

So, regardless that issues are a bit delayed, it doesn’t appear to be an enormous miss and it appears we are able to anticipate this new mannequin to come back out in coming months. After all, we don’t know any actual particulars round this extra reasonably priced mannequin, and there are nonetheless questions on how a lot it is going to enhance gross sales versus take gross sales from the Mannequin 3 and Mannequin Y, however this product enlargement is a key factor critics and followers have been calling for, so it’s signal that that is nonetheless roughly on observe.

2. Quantity Manufacturing of Semi

The Tesla Semi was the Tesla product I used to be most enthusiastic about … for years … and years. Sadly, mass manufacturing has taken far longer to reach than I and others hoped and anticipated. It’s to date delayed that I feel most of us neglect about it and write it off. Nevertheless, Tesla famous prominently in its quarterly letter that growth of the Semi (and Cybercab) has been persevering with and quantity manufacturing is deliberate for subsequent yr (for each the Semi and the Cybercab).

3. Power Storage Enterprise Doing Fairly Properly

Whereas car gross sales have drooped, many Tesla traders have been eager to level out that the corporate’s vitality storage enterprise has been rising strongly. And it has. Tesla notes that “Trailing twelve-month Power storage deployments achieved their
twelfth consecutive quarterly document.” One of many firm’s few monetary execs within the 2nd quarter was “progress in Power Technology and Storage gross revenue.”

That mentioned … progress on this section did clearly decelerate. When you have a look at the chart beneath and take note of how the bars had been rising quarter after quarter, Q2 2025 stands out for nearly leveling off quite than seeing comparable progress to different quarters.

However again to the positives, the nice factor is that Tesla acknowledges this as a large want and is making an attempt to take advantage of out of its battery abilities. Within the shareholder replace, Tesla wrote “The Power enterprise is extra crucial than ever. The supply of fresh, dependable vitality is critical for financial progress and an crucial for the event and commercialization of AI enabled services. As electrical energy demand grows, our Megapack product helps to extend utilization of current technology and transmission capability, leading to a extra environment friendly use of the electrical grid. When paired with photo voltaic PV, Megapack is price aggressive with conventional fossil gasoline technology belongings and may be deployed 4x quicker than conventional fossil gasoline crops of the identical capability. Trailing twelve-month Power storage deployments achieved their twelfth consecutive quarterly document.”

Certainly.

Some other issues — optimistic or unfavourable — that you simply assume stand out from this quarter’s shareholder replace from Tesla?