Tesla published its financial results for 2025 this afternoon. If 2024 was a bad year for the electric automaker, 2025 was far worse: For the first time in Tesla’s history, revenues fell year over year.

A bad quarter

Earlier this month, Tesla revealed its sales and production numbers for the fourth quarter of 2025, with a 16 percent decline compared to Q4 2024. Now we know the cost of those lost sales: Automotive revenues fell by 11 percent to $17.7 billion.

Happily for Tesla, double-digit growth in its energy storage business ($3.8 billion, an increase of 25 percent) and services ($3.4 billion, an increase of 18 percent) made up some of the shortfall.

Although total revenue for the quarter fell by 3 percent, Tesla’s operating profits grew by 20 percent. But declining income from operations, which also got much more expensive, saw Tesla’s net profit plummet 61 percent, to $840 million. Without the $542 million from regulatory credits, things would have looked even bleaker.

A bad 2025

Selling 1,636,129 cars in 2025 generated $69.5 billion in revenue, 10 percent less than Tesla’s 2024 revenue. But storage and energy increased 27 percent year over year to $12.7 billion, and services grew by 19 percent year over year to $12.5 billion. Together, these two divisions now contribute meaningful amounts to the business, unlike just a few short years ago.