Tesla reported a 12% decline in revenue for Q2 2025 compared to the same period last year.

Net income fell 16% year-over-year to US$1.17 billion, while operating income dropped 42% to US$923 million.

The company generated US$22.1 billion in revenue, slightly above Q1’s US$19.3 billion but just below analysts’ expectations of US$22.13 billion.

Revenue from regulatory credits dropped 50% year-over-year to US$439 million.

Tesla’s services sector, including its Supercharging network, saw a 17% revenue increase but couldn’t offset losses elsewhere.

Tesla delivered 384,122 vehicles in Q2, down 13.5% from a year ago, though up from 337,000 in Q1.

The company also faces legal and regulatory issues. The California DMV is pursuing a case to revoke Tesla’s license to sell vehicles over allegations of false advertising related to Autopilot and Full Self-Driving.

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