Tesla's revenue fell for the first time: 2025, second by second

Tesla reported revenue of $94.827 billion for 2025. Divided by the 31,536,000 seconds in a year, that is about $3,007 a second. It was also 3% less than in 2024 — the first time the company's annual revenue has gone down since it began reporting as a public company. Net income fell further, by 46%, to $3.8 billion.

A single counter cannot show what changed underneath, but the income statement in Tesla's annual report can, and it splits the year into three businesses that moved in opposite directions.

Cars shrank, the grid grew

Automotive revenue was $69.5 billion, about $2,205 a second, down almost 10% on 2024. It is still most of the company, but its share of revenue fell from about 79% to 73% in a year.

Energy generation and storage — mostly Megapack batteries sold to utilities and grid operators, plus Powerwall for homes — brought in $12.8 billion, about $405 a second, up 27%. Services and other, which covers servicing, used cars, insurance, merchandise and paid charging, brought in $12.5 billion, about $397 a second, up 19%. Together the two newer businesses now account for more than a quarter of Tesla's revenue.

Where the profit went

Gross profit — revenue minus the direct cost of what was sold — was $17.1 billion, only 2% lower than in 2024, so the business kept most of its margin despite selling less. The damage came further down. Research and development spending rose 41% to $6.4 billion, about $203 a second, and income from operations fell 38% to $4.4 billion.

The segments differ sharply in how much they keep. On the 10-K's figures, the energy business kept about 30 cents of gross profit from every dollar of revenue, automotive about 18 cents and services about 7. Overall, Tesla's net income came to about 4 cents per dollar of revenue, or roughly $120 a second.

The regulatory credits

One line inside automotive revenue deserves a separate look. Tesla sells regulatory credits to other carmakers that need them to meet emissions and fuel-economy rules, and in 2025 those sales brought in $1.99 billion, about $63 a second, down 28% on the year.

The 10-K reports no separate cost of revenue for credits, so almost all of that money is profit. It was equal to about half of Tesla's net income for the year. That is not to say Tesla would have made half as much without them — costs and taxes do not divide that neatly — but it shows how much of the bottom line rests on a revenue stream that exists because of other companies' regulatory position rather than Tesla's own sales.

Reading the counter

The Tesla counter on this site shows total revenue, spread evenly across the year. It does not show that revenue fell, that it is shifting from cars to batteries and services, or that profit is a small and shrinking share of it. Deliveries also arrive unevenly, bunched at the end of each quarter.

Every figure here comes from the consolidated statement of operations in Tesla's FY2025 Form 10-K on SEC EDGAR, which gives each line for 2025, 2024 and 2023 side by side. When Tesla files its 2026 report, early in 2027, the counter and this piece will be updated from it.