"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."
Tesla recorded a 46% drop in profit for 2025, totaling $3.8 billion, its lowest annual profit in years. Global shipments reached 1.63 million vehicles, while sales declined for a second consecutive year. The company previously targeted average annual growth of roughly 50%, but those growth rates did not materialize. Federal electric vehicle subsidies were eliminated by Congress, and CEO Elon Musk assumed a role in the Trump administration, factors tied to weakened demand and falling sales. Tesla signaled a strategic shift away from a hardware-centric automotive focus toward becoming a physical AI company to attract investor interest.
Read at TechCrunch
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