Tesla released its 2025 financial results this afternoon. If 2024 was a bad year for the electric carmaker, 2025 was considerably worse: for the first time in Tesla’s history, revenues declined year over year.
A bad quarter
Earlier this month, Tesla disclosed its Q4 2025 production and sales figures, showing a 16 percent drop versus Q4 2024. The impact of those missing sales is now clear: automotive revenue slipped 11 percent to $17.7 billion.
Fortunately for Tesla, strong double-digit gains in energy storage ($3.8 billion, up 25 percent) and in services ($3.4 billion, up 18 percent) offset part of the decline.
While total quarterly revenue fell 3 percent, Tesla’s operating income rose 20 percent. However, shrinking income from operations combined with higher costs sent net profit down 61 percent to $840 million. Excluding the $542 million from regulatory credits, the picture would have been even worse.
A bad 2025
Delivering 1,636,129 vehicles in 2025 produced $69.5 billion in revenue, 10 percent below Tesla’s 2024 haul. Storage and energy climbed 27 percent year over year to $12.7 billion, and services increased 19 percent year over year to $12.5 billion. Together those two segments now make a meaningful contribution to the company, unlike just a few years ago.
