Tesla delivered only 384,122 vehicles in Q2, down from 443,956 a year earlier
Tesla’s profits dropped 16% in the second quarter of 2025, while revenue fell 12% year over year to $22.4 billion, its largest decline in over a decade.
The company delivered 384,122 vehicles, down from 443,956 a year earlier.
Notably, free cash flow plunged 90% from $1.34 billion to just $146 million, and revenue from government credits dropped by more than 50%.
The downturn coincided with CEO Elon Musk’s exit from the White House and a public clash with President Donald Trump.
Musk warned that Tesla may face several challenging quarters ahead due to tax changes that reduce incentives for electric vehicles. Still, he emphasized the company’s focus on long-term growth through investments in robotics and artificial intelligence.
Musk touted Tesla’s robotaxi services in Austin and hopes to expand to half the US by the year-end. State approvals for the projects are still in progress.