Tesla has reported a 12% year-on-year (YoY) decrease in total revenue for the second quarter (Q2) of 2025, with figures falling to $22.49bn from $25.5bn in the same period last year.

The company's Q2 2025 financial results reflect vehicle delivery decline and lower regulatory credit revenue, among other factors.

The company sold 384,122 cars in Q2, down 13.5% from the sales total a year ago.

Total automotive revenues saw a 16% YoY decrease for a second straight quarter to $16.6bn in Q2 2025.

Net income attributable to common stockholders (GAAP) for the quarter also fell by 16% to $1.17bn, while non-GAAP net income saw a 23% decline to $1.39bn.

The company's total gross profit dropped by 15% YoY to $3.87bn. Net cash from operating activities decreased by 30% to $2.54bn, and adjusted EBITDA was down 7% at $3.40bn for Q2 2025.

Operating expenses also experienced a slight decrease of 1% to $2.95bn.

Income from operations plummeted by 42% to $923m, mainly affected by lower regulatory credit revenue, increased operating expenses due to AI and research and development (R&D) projects, and vehicle delivery decline.

Tesla has noted in the update letter that its lithium refining and cathode production plants are set to start production in 2025, aiming to onshore the production of critical battery materials in the US.

The company is also preparing to start domestic production of its first LFP cells for energy storage products later in 2025.

Tesla emphasises a “capex-efficient” approach to growing vehicle volumes, utilising current production capacity before expanding.

The anticipated launch of new vehicles in 2025, including “a more affordable model” in the first half of the year, remains on schedule.

Tesla's Cybercab, a Robotaxi product, is expected to enter volume production in 2026.

The company sold 384,122 cars in Q2, down 13.5% from the sales total a year ago.

In the first quarter (Q1) revenues 2025, which ended on 31 March, Tesla reported a 20% decline.