Falling EV sales combined with a lower average selling price, less cash from regulatory credits, and a decline in solar and energy storage revenue took a toll on Tesla’s bottom line in the second quarter of 2025. And a 17% growth in revenue in its services business, which includes capital generated from its Supercharging network, wasn’t enough to close the gap.
The company reported Wednesday revenue of $22.5 billion, a 12% decline from the same period last year. The company’s Q2 revenue results did show an improvement over the first quarter when it generated $19.3 billion in revenue and did manage to just barely beat analysts expectations. (Analysts polled by Yahoo finance expected revenue in the second quarter to reach $22.13 billion.)
However, net income, and more specifically operating income, is where the year-over-year gap grows larger.
Tesla reported net income of $1.17 billion in the second quarter, a 16% drop from the $1.4 billion in net income in the same period last year. Tesla reported $409 million in net income in Q1 2025 in the first quarter of the year.
Meanwhile, Tesla’s operating income fell 42% year-over-year to $923 million.
