Tesla released its monetary outcomes for 2025 this afternoon. If 2024 was a bad year for the electrical car manufacturer, 2025 was far even worse: For the very first time in Tesla’s history, profits fell year over year.

A bad quarter

Previously this month, Tesla exposed its sales and production numbers for the 4th quarter of 2025, with a 16 percent decrease compared to Q4 2024. Now we understand the expense of those lost sales: Automotive profits fell by 11 percent to $17.7 billion.

Gladly for Tesla, double-digit development in its energy storage company ($3.8 billion, a boost of 25 percent) and services ($3.4 billion, a boost of 18 percent) comprised a few of the shortage.

Overall earnings for the quarter fell by 3 percent, Tesla’s operating earnings grew by 20 percent. Decreasing earnings from operations, which likewise got much more costly, saw Tesla’s net revenue drop 61 percent, to $840 million. Without the $542 million from regulative credits, things would have looked even bleaker.

A bad 2025

Offering 1,636,129 cars and trucks in 2025 produced $69.5 billion in income, 10 percent less than Tesla’s 2024 income. Storage and energy increased 27 percent year over year to $12.7 billion, and services grew by 19 percent year over year to $12.5 billion. Together, these 2 departments now contribute significant total up to business, unlike simply a couple of brief years earlier.