Tesla profit tanked 46% in 2025
TechCrunch • • business
Key Points:
- Tesla’s profit dropped 46% in 2025 to $3.8 billion, with car sales revenue falling 11% year-over-year, impacted by CEO Elon Musk’s role in the Trump administration and the elimination of federal electric vehicle subsidies.
- Despite declining automotive sales for the second consecutive year, Tesla surpassed Wall Street’s earnings and revenue expectations, boosting its stock in after-hours trading.
- The company is shifting focus from hardware to AI, highlighted by a $2 billion investment in Musk’s AI startup xAI and growth in its solar, energy storage, and services segments.
- Tesla plans to begin production of the Tesla Semi and Cybercab in the first half of 2026, alongside new initiatives such as lithium refinery
