April 23, 2025 – Tesla has unveiled its financial results for the first quarter of 2025, revealing a substantial decline in key financial metrics such as revenue and profit, primarily driven by a sharp drop in vehicle deliveries.
The company reported revenue of 19.335billionforthequarter,fallingshortofthemarketconsensusof21.348 billion and marking a 9% decline from the $21.3 billion recorded in the same period last year. This downturn in revenue was largely attributed to a decrease in vehicle deliveries, which Tesla attributed to factors including the transition to a new Model Y generation and a reduction in the average selling price (ASP) of its vehicles.
According to the financial report, Tesla’s vehicle deliveries for the first quarter failed to meet market expectations, totaling 336,681 units, a 13% year-over-year decrease and the worst quarterly performance since 2022. This included 323,800 units of the Model 3/Y models and 12,881 units of other models. During the same period, Tesla produced 362,615 vehicles, with 345,454 units of the Model 3/Y models and 17,161 units of other models.
Consequently, Tesla’s automotive revenue for the first quarter plummeted to $13.967 billion, a 20% year-over-year decline.
Notably, Tesla’s net profit for the first quarter plummeted by 71%, dropping from 1.39billion(or0.41 per share) last year to 409million(or0.12 per share). Operating profit for the quarter also fell significantly, declining by 66% from 1.17billioninthesameperiodlastyearto400 million, resulting in an operating profit margin of 2.1%, a decrease of 343 basis points year-over-year. The company cited increased expenses related to artificial intelligence projects as one of the reasons for the profit decline.
Without the revenue from environmental regulatory credits, Tesla would have incurred a loss in automotive sales for the quarter. The company’s revenue from the sale of full-electric vehicles, which generates these credits, increased from 432millioninthesameperiodlastyearto595 million.
In contrast, Tesla’s energy generation and storage business experienced a 67% year-over-year increase in revenue, rising from 1.64billionto2.73 billion for the quarter.
