Overview

• Tesla reported a 16% year-on-year net income decline to $1.2 billion in Q2 2025 on $22.5 billion in revenue with vehicle deliveries down 13.5%.
• European registrations of Tesla vehicles fell 22.9% in June, extending a six-month contraction that cut the brand’s market share from 3.4% to 2.8%.
• CFO Vaibhav Taneja warned that new U.S. rules eliminating fuel-economy noncompliance penalties and a $7,500 EV tax credit will halve future profits from emission-credit sales.
• Tesla’s emission-credit revenue plunged to $439 million in Q2—half last year’s level—while its energy-storage shipments fell 7% to 9.6 GWh.
• The company began initial production of its lower-cost electric model in June with series output planned for late 2025 and confirmed robotaxi volume production will start in 2026.