3 Positives from Tesla’s Q2 2025 Shareholder Replace?

We’ve intently coated 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 may considerably harm Tesla’s funds. Additionally, it’s laborious — or inconceivable — 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 developments now that the corporate’s Q2 2025 shareholder letter is out, however provided 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 determine — I don’t know.

1. First Builds of Inexpensive Tesla Mannequin in June

A brand new, extra reasonably priced Tesla mannequin was supposed to enter manufacturing in June, a missed milestone that we coated a few occasions just lately. Nonetheless, the corporate did notice within the shareholder letter that first builds of the mannequin have been created in June. Moreover, Tesla is planning on quantity manufacturing of the mannequin within the second half of 2025.

So, although issues are a bit not on time, it doesn’t appear to be a giant miss and it appears we are able to count on this new mannequin to return out in coming months. In fact, we don’t know any actual particulars round this extra reasonably priced mannequin, and there are nonetheless questions on how a lot it should increase 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 a very good signal that that is nonetheless kind of 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 up to now not on time that I feel most of us overlook about it and write it off. NonethelessTesla famous prominently in its quarterly letter that growth of the Semi (and Cybercab) has been persevering with and quantity manufacturing is deliberate for subsequent 12 months (for each the Semi and the Cybercab).

3. Power Storage Enterprise Doing Fairly Properly

Whereas automobile 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 file.” One of many firm’s few monetary professionals within the 2nd quarter was “progress in Power Era and Storage gross revenue.”

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

However again to the positives, the great factor is that Tesla acknowledges this as a large want and is attempting to take advantage of out of its battery expertise. Within the shareholder replace, Tesla wrote “The Power enterprise is extra vital than ever. The supply of unpolluted, 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 gas technology belongings and could be deployed 4x sooner than conventional fossil gas crops of the identical capability. Trailing twelve-month Power storage deployments achieved their twelfth consecutive quarterly file.”

Certainly.

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