Overview

• Tesla’s total revenue for Q2 2025 fell 12 percent year over year to $22.5 billion and net income declined 16 percent to $1.1 billion.
• Automotive revenue dropped 16 percent to $16.7 billion as vehicle deliveries fell 14 percent from a year earlier.
• Revenue from regulatory-credit sales nearly halved to $439 million, undermining a key profitability lever.
• Tariff-related costs rose by approximately $300 million sequentially and the $7,500 federal EV tax credit is set to expire in September, intensifying margin pressure.
• Elon Musk warned of “a few rough quarters” and shifted the company narrative toward AI-driven robotaxis and humanoid robots.