Tesla published its financial statement for the second quarter of the year this afternoon. In early July, we learned that the American automaker had had a good quarter in terms of salesgrowing 25 percent year over year. However, fans hoping that increased sales will result in a fairly profitable Tesla may be disappointed. Revenues have increased, but so have expenses, and the company’s once enviable double-digit profit margin has fallen to just 1.4 percent.
Tesla raised $20.5 billion from its electric vehicle business, up 23 percent year over year, and only $146 million came from automotive regulatory credits. Credits have been key to Tesla’s profitability in previous difficult quarters, but were abolished in the United States with Musk’s blessing in 2025.
There was growth in its energy and storage business, which grew 13 percent year over year to revenue of $3.1 billion, but the biggest growth came in Tesla’s services, which doubled, generating $4.6 billion. Tesla’s move from a one-time purchase to a monthly subscription for its much-criticized partially automated driving assistant FSD, something related to CEO Elon Musk gigantic remuneration package—was a great help here.
Overall, total revenue rose 26 percent to $28.2 billion.
But the cost of doing business rose even further. Tesla’s operating expenses rose 47 percent to $4.4 billion, and revenue from those operations fell 57 percent year over year to $398 million. The company remains profitable: It generated $1.1 billion in the quarter, but that’s down 5 percent from the same three months last year.
