On July 24th， Tesla released its second-quarter financial report， revealing a double-digit decline in both revenue and net profit， occurring amidst a continuous downward trend in sales.
According to the report， Tesla’s second-quarter revenue reached $22.496 billion， a 12% decrease year-on-year， falling short of the market’s expectation of $22.826 billion. Net profit for the quarter was $1.172 billion， down 16% year-on-year， also missing the forecasted $1.136 billion. Adjusted earnings per share stood at $0.40， a 23% decline from the previous year， and below the expected $0.42.
The automotive segment， which is Tesla’s core business， generated $16.661 billion in revenue， marking a 16% year-on-year decrease. This follows a 20% year-on-year decline in the first quarter.
Tesla attributed the drop in revenue and profitability primarily to decreased vehicle sales and a reduction in regulatory credits. The company earned $439 million from selling carbon credits to other automakers， which is less than half of the $890 million earned in the same period last year. This suggests a softening demand for electric vehicles from other manufacturers or a stronger competitive landscape in the credit market.
From a policy perspective， the $7，500 tax credit for electric vehicle consumers in the United States is set to expire in October of this year. This policy expiration could further impact Tesla’s profit margins by potentially reducing consumer purchasing power for their vehicles.
In terms of volume， Tesla delivered 384，100 vehicles in the second quarter of 2025， a year-on-year decrease of 13.48%. This delivery figure represents the lowest quarterly volume for Tesla since 2022 and marks the second consecutive quarter of year-on-year delivery decline.
For the first half of this year， Tesla’s cumulative vehicle deliveries were 720，803 units. This is approximately 110，000 units shy of the total sales achieved in the first half of last year. If Tesla fails to bridge this sales gap in the second half of the year， it could mark the second consecutive year of declining sales， which would be a significant concern for investors and stakeholders.
