Tesla in Deep Crisis: Profits and Revenue Tumble in Q2 2025

The electric car manufacturer Tesla continues to be deep in the crisis: for the second quarter of 2025, the company reported a significant decline in profits and income. And positive impulses can hardly be seen.

Low expectations failed

The company’s adjusted net profit fell 23 percent to $ 1.4 billion – a minus of 419 million compared to the previous year. Sales also fell by 12 percent, and sales from the auto business even fell by 16 percent. Tesla thus clearly missed the expectations of the analysts. The proceeds per sold vehicle shrank by $ 500 to an average of $ 42,231 in the quarterly comparison, which points out that the more expensive models in particular are in demand. The sales of the popular models Model Y and Model 3 decreased by twelve percent in the year. The slump in more expensive models such as the cyberruck, the sales of which broke up by 52 percent.

According to analysts, reasons for the weak development are, among other things, the increasing competition on the e-car market, especially from China, as well as the controversial public statements by CEO Elon Musk, which massively harm the brand image. Particularly explosive for the company: Even in markets in which the sales of electric cars increase as a whole, Tesla loses market shares – so competitors benefit from growth.

Increase in purchase is no

There are also impending economic risks. From October, a US tax credit of $ 7,500 for e-car buyers expires-an incentive that often influenced the purchase decision in the USA. In addition, an important source of income is eliminated by a new law: the penalty payments for emission crossing in conventional car manufacturers are eliminated, which means that Teslas should no longer work lucrative sales of emission certificates in the future.

Tesla has earned around eleven billion dollars since 2019. Elon Musk hardly commented on the slump in profits when presenting the quarterly figures. Instead, he focused on future projects such as the Robotaxi and the Humanoid robot “Optimus”. Musk announced that the Robotaxi service should reach half of the US population by the end of the year-but the offer is currently only available to a limited extent in Austin, Texas.