Tesla’s Q2 2025 earnings call was packed with major updates, including fresh details on its upcoming lower-cost EV, accelerated robotaxi plans, and the growing presence of its Optimus humanoid robot. But one of the most telling signs of Tesla’s near-term strategy came from how Elon Musk and his team discussed the company’s next affordable vehicle — positioning it as a post-tax-credit play.
Tesla reported $22.5 billion in revenue for Q2 2025, down 12% year-over-year, with net income (GAAP) of $1.17 billion and an operating margin of 4.1%.
During the call, Tesla confirmed that while production for the new lower-cost vehicle has technically started, a full ramp won’t happen until Q4 2025. That timing may not be a coincidence. The U.S. government is set to end the $7,500 EV tax credit on September 30, 2025, following a new bill passed earlier this month. By delaying mass availability until after this policy change, Tesla appears to be setting itself up to stoke fresh demand in the absence of the federal incentive.
“The desire to buy the car is very high, just people don’t have enough money in the bank account to buy it. Literally, that is the issue,” said Musk.
“The more affordable we can make the car, the better,” added Truist Securities analyst William Stein.
Tesla’s strategy seems to hinge on future affordability — not just through price cuts, but through new business models. Musk said he expects personally owned vehicles to be able to join Tesla’s Robotaxi network by next year, effectively turning a car into a money-making asset, much like Airbnb.
The car itself, while still under wraps, will reportedly include cost-saving measures like reduced silicon carbide and rare earth usage, as mentioned in past analyst days. But the real shift is strategic: Tesla appears to be timing this product launch to offset the end of federal subsidies and reignite interest with an “earn-while-you-drive” pitch.
Tesla confirmed it is aggressively expanding its robotaxi pilot beyond Austin, Texas. According to Musk, the company expects “half the population of the U.S.” to have access to its Robotaxi service by the end of the year. That would be a major leap from what has so far been a tightly controlled beta. If it happens, Tesla will dwarf competitors in scale — and possibly regulation — just months after it entered the market.
Meanwhile, other parts of the call spotlighted major progress on Full Self-Driving (FSD), with take rates up 45% since V12 launched. Tesla said most owners still don’t realize what their cars can do. Elon compared the tech to “a cat that can sing and dance, but it just looks like an old cat.” Many Tesla drivers haven’t tried FSD even once, and the company plans to nudge them with prompts and free trials.
Tesla also gave rare insight into the status of its Optimus humanoid robot, several units of which are already walking around Tesla offices. The company plans to show off a full squad of robots at its upcoming shareholder meeting, and according to Tesla’s VP of Vehicle Engineering Lars Moravy, the development lab itself is worth a tour. He described it as “some combination of the Tatooine junkyard and Westworld”, with multiple robots walking around, undergoing repairs, and even testing basic workplace roles like serving popcorn in the Tesla Diner.
If there’s a message to take from Q2, it’s that Tesla isn’t just betting on the next car — it’s betting on a complete shift in how cars are bought, used, and paid for, alongside its longstanding ambitions to be more than just a car company.
