Tesla's 2025 Profits Were Even Worse Than We Expected
Tesla has released its 2025 year-end financial results, and they are disastrous, to say the least. Yahoo Finance reported that Tesla's profits fell 46% compared to last year, with the automaker's financial statements backing that up.
Tesla's 2024 net income was $7.091 billion, dropping to $3.794 billion in 2025. That's quite a drop. There are several reasons for the precipitous drop, and it's only partly to do with the popularity of Tesla's cars. That said, it's true that sales are dropping as competition heats up, especially from Chinese automakers like the Tesla-rivaling BYD. Compared to a few years ago, there are just flat-out more electric cars to choose from, squeezing Tesla out of sales.
Deliveries are falling as a result. In 2024, Tesla delivered 1,704,093 Model 3 and Model Y cars. In 2025, that number dropped to 1,585,279. Both 2024 and 2025 are lower still than 2023's 1,739,707 Model 3 and Model Y deliveries.
A lot going on at Tesla
Tesla's financial results presentation outlined that 2025 was the year it started moving away from being a "hardware-centric business to a physical AI company." It highlighted the company's ongoing development of its AI infrastructure alongside notable debuts such as the release of its supervised Full Self-Driving feature and its Robotaxis. The company has also laid the groundwork for Cybercab production and further refined its upcoming Optimus robot.
Essentially, Tesla isn't focusing on just cars anymore, and has a lot more irons in the fire. This is further evidenced by the fact that Tesla is phasing out the Model X and S. It's also leaning heavily into its Robotaxi and Cybercab efforts, despite there being many reasons to be skeptical of them — especially the latter.
Whether Tesla is slowly moving away from personal transportation in favor of AI-powered robots and services such as robotaxis is anyone's guess. After all, the company's leadership is fickle, while the landscapes of electric vehicles and artificial intelligence are always changing.