Tesla's Q2: A Freefall In Operating Cash, A Meltdown In Margins

Tesla, Inc.'s Q2 2025 saw double-digit declines in revenue, deliveries, and free cash flow, with even the energy segment now deteriorating. Profitability is collapsing, with operating margin dropping to 4.1% and free cash flow falling 89% year-over-year, despite ongoing heavy CapEx. Without regulatory credits starting Q4 2025 and with intensifying competition, especially in China and Europe, profitability faces further pressure.