Tesla’s profit fell 46% in 2025 compared to the prior year, as CEO Elon Musk assumed a role in the Trump administration and federal electric vehicle subsidies were killed off by Congress, causing sales to plummet.
The electric vehicle company reported Wednesday that it recorded just $3.8 billion in profit across the year, its lowest tally in years. Tesla already revealed that it shipped 1.63 million cars globally across the year. That marks the second year in a row that its sales have declined, after Musk spent years promising average annual growth of 50%.
The profit decline comes as Tesla continues its attempt to lure investors’ attention away from its stalled-out automotive business.
“2025 marked a critical year for Tesla as we further expanded our mission and continued our transition from a hardware-centric business to a physical AI company,” the company wrote in its shareholder letter.
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