Tesla’s 2025 profits will fall 46% from the previous year as CEO Elon Musk took over the Trump administration and sales plummeted as federal electric vehicle subsidies were ended by Congress.
The electric car company reported Wednesday that its annual profit was just $3.8 billion, its lowest figure in years. Total revenue from car sales also decreased by 11% year-on-year. Tesla has already revealed that it shipped 1.63 million cars worldwide in 2025. This is the second year in a row that sales have declined, despite Musk’s promise for years of average annual growth of 50%.
The decline in sales and profits comes as Tesla continues to try to divert investor attention from its stalled auto business.
“2025 is an important year for Tesla as we further expand our mission and continue our transition from a hardware-centric business to a physical AI company,” the company wrote in a letter to shareholders. In a letter, Tesla revealed that it recently invested $2 billion in Elon Musk’s artificial intelligence startup xAI as part of the company’s Series E funding round.
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