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Tesla Reports 12 Percent Revenue Growth in Q3 2025 Driven by Automotive and Energy Segments

Net income declines 29% to $1.77 billion amid tariff impacts

Tesla recorded a 12% year-over-year increase in revenue, reaching $28.1 billion in the third quarter (Q3) of 2025, up from $25.1 billion in the same period last year. The growth was fueled by higher vehicle deliveries and strong expansion in the company’s energy business. However, the results fell short of analysts’ projections by $1.39 billion.

The company’s net income dropped 29% to $1.77 billion, compared to $2.5 billion in Q3 2024, while diluted earnings per share (EPS) declined from $0.72 to $0.50, missing estimates by $0.06.

Chief Financial Officer Vaibhav Taneja highlighted that Tesla achieved new records across multiple metrics, including total revenues, energy margins, and free cash flow, supported by robust customer confidence despite margin pressures.

Tesla’s automotive revenue rose 6% year-over-year to $21.2 billion, while energy generation and storage revenue surged 44% to $3.41 billion, up from $2.37 billion a year ago. Services and other revenue climbed 25% sequentially to $3.47 billion, compared to $2.79 billion in the previous quarter.

The company delivered 497,099 vehicles, marking a 7% YoY increase, while global vehicle inventory dropped to 10 days of supply, down 47% from last year.

Regional performance remained strong, with Greater China and Asia-Pacific showing sequential growth of 33% and 29%, respectively. North America rose 28%, while Europe, the Middle East, and Africa advanced 25%.

Tesla also generated a record free cash flow of around $4 billion during the quarter. Nonetheless, tariffs negatively impacted earnings by more than $400 million, evenly split between the automotive and energy divisions.

Taneja noted that the tariff issue mainly affected costs associated with products sourced from China. However, Tesla’s Shanghai megafactory expansion has begun mitigating this impact by serving non-U.S. markets.

In Q3, Tesla also broadened its vehicle lineup across several regions, introduced leasing for pre-owned cars, and commenced deliveries in India, further strengthening its global footprint.