Gross profits are the money making engine that companies use to fund operating expenses, growth and developing the next product.

For Tesla, Quarterly gross profits hovered around $5 billion in 2022 and since that peak have been on a long slow slide. Q1 2025 fell further below this downward trend. At the Q1'25 meeting Musk said the precipitous drop in Q1 2025 was due to a changeover to the refreshed model Y, instead of damage to the brand. Musk also promoted the conspiracy theory that protesters against Tesla are paid actors.

Will Q2 gross profits bounce back?