$TSLA Financials: Q2 vs Q1Tesla, Inc.BATS:TSLAfract🏛️ Research Notes A climb to even sub-ATH levels signals profound market irrationality, implying Tesla not only recovered its losses but has also reversed a widespread, likely permanent, client boycott across its key markets (US, EU, Canada). The closer examination of Q2 fundamentals ahead of the Q3 2025 release would be a great help. ⚖️ Q2 vs Q1 Revenue Decline: Revenue fell -12% YoY, automotive sales down -16% → confirms weakness in U.S., EU, and China. Gross Margins: Erosion continued as price cuts + BYD competition intensified. Operating Income: Dropped -42% YoY, reflecting higher expenses + lower leverage. Net Income: Down -16% YoY → analysts’ earnings downgrades justified. Cash Flow & Liquidity: Free cash flow fell, inventory buildup worsened liquidity strain. Balance Sheet: Inventory levels rising as deliveries lag production. Short-term: Bounce faces major resistance near supply zones — failure to break higher could trap late buyers. Mid-term: With Q2 confirming Q1 risks, the bull case weakens unless Q3 shows clear recovery in demand and margins. Long-term: Competitive pressures (BYD, Chinese EVs, European slump) + high CapEx needs keep pressure on liquidity and valuation. 🛟 What to Watch in Q3 Delivery Numbers: Any rebound in U.S., China, or Europe sales will be critical to reversing revenue decline. Margin Stabilization: If Tesla can offset price cuts with cost savings or improvement in production efficiency Cybertruck Performance: Demand recovery and reduced recall issues are needed to restore confidence in new models. Inventory Levels: Watch if inventory growth slows - otherwise more discounting and margin erosion likely. Cash Flow Trends: Improvement in operating cash flow would ease liquidity fears. CapEx & R&D: How much Tesla spends on batteries, autonomy, and AI vs. how much cash it burns will be closely watched. Institutional Sentiment: If big funds divest, rallies may keep fading at resistance. Tesla’s bounce still looks more like a retail-driven relief rally than the start of a sustainable reversal. Q2 earnings show deterioration across key financial metrics. In Q3, watch whether Tesla can stabilize sales, margins, and cash flow failure to do so keeps the path of least resistance to the downside.