TSLA Tesla TSLA is slated to release second-quarter 2025 results on July 23, after the closing bell. We will focus on the company’s Energy & Service and Other Businesses, which are currently experiencing an improvement in their performance. TSLA missed earnings estimates in three of the trailing four quarters and surpassed once, the average negative surprise being 8.33%. Before we delve into the factors that are set to shape its upcoming results, here’s a snapshot of its first-quarter 2025 earnings report. Tesla’s Q1 Highlights In the first quarter of 2025, the electric vehicle (EV) titan reported earnings per share of 27 cents, which fell from the year-ago figure of 45 cents and missed the Zacks Consensus Estimate of 44 cents. Total revenues came in at $19.33 billion, witnessing a year-over-year decline of 9%. The top line also missed the consensus mark of $21 billion. Tesla’s first-quarter energy deployment rose to 10.4 GWh from 4.05 GWh in the first quarter of 2024. Energy Generation and Storage revenues totaled $2.73 billion in first-quarter 2025, surging 67% year over year but lagging our estimate of $3 billion. Services and Other revenues totaled $2.64 billion, up 15% year over year. Tesla had cash/cash equivalents of $37 billion as of March 31, 2025. Long-term debt and finance leases, net of the current portion, totaled $5.3 billion, down from $5.7 billion as of Dec. 31, 2024. The company generated FCF of $664 million during the reported quarter, which fell from $2.8 billion generated in the year-ago period. Strong Energy & Service and Other Businesses to Aid TSLA Tesla’s energy storage deployments have been steadily growing over the past year, thanks to expanding Powerwall and Megapack capacity. In the first quarter of 2025, Powerwall deployment hit a record 1 GWh despite ongoing supply constraints. In the second quarter, the company deployed 9.6 GWh of energy storage products compared to 9.4 GWh in the second quarter of 2024. We expect revenues from Energy Generation & Storage business to be $3.04 billion, suggesting a rise of 0.7% year over year. We expect the gross margin from the Energy Generation & Storage business to rise 26.7% from 24.6% in the year-ago period. In the first quarter of 2025, the company opened more than 1,800 new Supercharging stalls, indicating a rise of 17% year over year. Services and Other unit gross profit rose 25% year over year in the last reported quarter, aided by stronger maintenance and collision services. Services & Other revenues are expected to be around $3.15 billion, suggesting an increase of 20.7% year over year. Gross margin of Services & Other business is expected to be around 10%, up from 6.4% in the year-ago quarter. While Tesla's core EV business is struggling with weaker deliveries, rising gross profit from Energy & Service and Other Businesses is likely to have somewhat offset Tesla’s losses in the second quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Story Continues