Tesla revenue slips in 2025 as energy unit grows and vehicle sales fall
Tesla has reported lower automotive revenue and earnings for both the fourth quarter and full year of 2025, while its energy operations continued to grow.
For the three months ended 31 December, total revenue slipped 3% to $24.90bn.
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Automotive takings dropped 11% to $17.69bn, offset in part by a 25% rise in energy generation and storage revenue to $3.84bn and an 18% increase in services and other income to $3.37bn.
Gross profit rose to $5.01bn and gross margin improved to 20.1%, up from 16.3% a year earlier.
Net income attributable to common stockholders, however, fell 61% to $840m, with diluted earnings per share declining to $0.24 from $0.60.
Quarterly operating income fell 11% year over year to $1.40bn, corresponding to an operating margin of 5.7%.
Across the full year, revenue edged down 3% to $94.82bn.
Automotive revenue fell 10% to $69.52bn, while energy generation and storage climbed 27% to $12.8bn and services and other revenue advanced 19% to $12.53bn.
Net income attributable to common stockholders decreased 46% to $3.79bn, with diluted EPS of $1.08 compared with $2.04 in 2024.
The company’s annual operating income came in at $4.35bn, a decline of 38%.
Free cash flow rose 74% to $6.22bn, and cash, cash equivalents and investments increased 21% to $44.05bn.
Vehicle deliveries in the fourth quarter declined 16% year-on-year to 418,227 units, while production slipped 5% to 434,358.
For 2025, deliveries fell 9% to 1.63 million vehicles and output dropped 7% to 1.65 million units.
In its statement, the company said: “Automotive sales declined sequentially, [but] gross margin (even when excluding the impact of regulatory credits) improved. The APAC region continued to show strength across multiple markets and set a record for deliveries in the quarter.”
Energy storage deployments reached 46.7 GWh during the year, up 49%.
By year end, Tesla operated 1,553 locations worldwide and 8,182 Supercharger stations with 77,682 connectors.
The company said preparations were continuing in North America for production ramps of Tesla Semi and Cybercab in the first half of 2026, alongside the next-generation Roadster.
It also outlined plans to invest in infrastructure supporting clean energy, transport and autonomous robots, including six new production lines across vehicles, robotics, energy storage and batteries.
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