Tesla reported lower revenue and earnings for both the fourth quarter and the full year of 2025, reflecting a slowdown in vehicle sales that outweighed strong growth in its energy generation and storage business.
For the three months ended December 31, Tesla posted total revenue of $24.90 billion, down 3 per cent from a year earlier. Automotive revenue declined 11 per cent to $17.69 billion, driven by weaker deliveries and pricing pressures. That decline was partially offset by a 25 per cent jump in energy generation and storage revenue, which rose to $3.84 billion, and an 18 per cent increase in services and other revenue to $3.37 billion.
Despite lower sales, Tesla reported an improvement in profitability at the gross level. Gross profit increased to $5.01 billion, and gross margin expanded to 20.1 percent, up from 16.3 per cent in the same period last year. However, net income attributable to common stockholders fell sharply, dropping 61 percent to $840 million. Diluted earnings per share declined to $0.24 from $0.60 a year earlier.
Operating income for the quarter fell 11 per cent year over year to $1.40 billion, translating to an operating margin of 5.7 per cent.
For the full year 2025, Tesla’s revenue edged down 3 percent to $94.82 billion. Automotive revenue declined 10 percent to $69.52 billion, while energy generation and storage revenue climbed 27 percent to $12.8 billion. Services and other revenue increased 19 percent to $12.53 billion.
Annual net income attributable to common stockholders fell 46 percent to $3.79 billion, with diluted earnings per share of $1.08 compared with $2.04 in 2024. Operating income for the year dropped 38 percent to $4.35 billion.
Tesla’s cash position strengthened despite weaker earnings. Free cash flow rose 74 percent to $6.22 billion, while cash, cash equivalents, and investments increased 21 percent to $44.05 billion.
Vehicle deliveries continued to soften. In the fourth quarter, deliveries declined 16 percent year over year to 418,227 vehicles, while production slipped 5 percent to 434,358 units. For the full year, deliveries fell 9 percent to 1.63 million vehicles, and production dropped 7 percent to 1.65 million.
Tesla said the Asia-Pacific region remained a bright spot, setting a quarterly delivery record. Energy storage deployments reached 46.7 gigawatt-hours in 2025, up 49 percent year over year.
By year-end, Tesla operated 1,553 locations worldwide and 8,182 Supercharger stations with 77,682 connectors. Looking ahead, the company said it is preparing for production ramps of the Tesla Semi and Cybercab in North America in the first half of 2026, along with the next-generation Roadster, while continuing to invest in clean energy, autonomous technology, and robotics.
