Tesla profit tanked 46% in 2025

Profit Decline and Sales Performance

Tesla’s profit fell 46% in 2025 compared to the prior year, as reported in a recent earnings update. This marks a significant downturn despite CEO Elon Musk’s long-standing promises of 50% annual growth. The company’s sales declined for a second consecutive year, with total vehicle deliveries dropping to 1.64 million units in 2025, down 9% from the previous year.

Market and Competitive Context

Chinese electric vehicle rival BYD sold 2.26 million vehicles in 2025, surpassing Tesla’s output and highlighting growing competition in the global EV market. This shift underscores Tesla’s declining market position as a leading electric vehicle manufacturer.

Additional Financial and Operational Insights

While Tesla’s overall revenue remained relatively flat, with a 2.1% year-over-year decline in trailing 12-month revenue, certain segments such as services and other operations saw growth. Services and Other gross profit increased 64% sequentially, driven by improved Supercharging gross profit generation from higher volume.

External Factors and Challenges

Higher production costs and the expiration of federal tax credits for electric vehicles are cited as key factors that contributed to Tesla’s declining profitability. These macroeconomic and policy-related pressures have significantly impacted Tesla’s financial performance in 2025.

來源：https://techcrunch.com/2026/01/28/tesla-earnings-profit-q4-2025/