A decrease in demand for Teslas has caused a significant drop in automotive revenue for the company.
In the first quarter of 2025, Tesla Inc. reported a significant decline in automotive revenue, dropping by 13% year-over-year to $17.38 billion, primarily due to reduced vehicle deliveries and increased competition in the electric vehicle market. The company delivered 386,810 vehicles, a decrease from the 422,875 vehicles delivered in the same quarter of the previous year, reflecting challenges such as production issues and a softening demand in key markets like China and the U.S. Despite the revenue drop, Tesla's energy generation and storage segment saw growth, with revenue increasing by 7% to $1.64 billion, driven by higher deployments of solar and energy storage products. Additionally, Tesla's services and other revenue streams, including Supercharger usage and vehicle maintenance, rose by 25% to $2.29 billion, partially offsetting the automotive sector's downturn. Overall, Tesla's total revenue for the quarter was $21.31 billion, down 9% from the previous year, with the company attributing the decline to various external factors and strategic price adjustments aimed at maintaining market share.
Automotive & Transportation
Tue, April 22, 2025
