Tesla published its financial results for 2025 this afternoon. If 2024 was a bad year for the electric automaker, 2025 was much worse: For the first time in Tesla’s history, revenues declined year over year.
a bad quarter
Earlier this month, Tesla revealed its sales and production numbers for the fourth quarter of 2025, which showed a 16 percent decline compared to the fourth quarter of 2024. Now we know the cost of those lost sales: Automotive revenues fell 11 percent to $17.7 billion.
Happily for Tesla, double-digit growth in its energy storage business ($3.8 billion, up 25 percent) and services ($3.4 billion, up 18 percent) offset some of the shortfall.
Although total revenue declined 3 percent for the quarter, Tesla’s operating profit increased 20 percent. But a decline in income from operations, which became much more expensive, caused Tesla’s net profit to fall 61 percent to $840 million. Without the $542 million from regulatory credits, things would have looked even bleaker.
a bad 2025
Selling 418,227 cars in 2025 results in revenue of $69.5 billion, which is 10 percent less than Tesla’s 2024 revenue. But storage and energy grew 27 percent year over year to $12.7 billion, and services grew 19 percent year over year to $12.5 billion. Unlike a few years ago, both these divisions together now contribute meaningful amounts to the business.
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