"Tesla CEO Elon Musk has spent months - years? - trying to position his company as something more than just a maker of electric vehicles. When Tesla acquired Solar City in 2016, he (and his comms team) pitched it as a sustainable energy company. Over the past year, he has pushed the idea of Tesla as an AI and robotics company. Musk's aspirational branding has slammed right up against financial reality: The bulk of its revenue comes from selling EVs."
"The company generated $94.8 billion in revenue in 2025. Of that, $69.5 billion came from selling and leasing EVs as well as related regulatory credits. The remaining $25 billion is split nearly down the middle between its energy generation (solar) and storage business and "services and other," which include revenue from its Superchargers, parts sales, and Full Self-Driving subscriptions. That reliance on deliveries means that as EV sales have dipped, so has Tesla's entire balance sheet. Its profits in 2025 were 46% lower year-over-year."
Tesla generated $94.8 billion in revenue in 2025, with $69.5 billion from selling and leasing EVs and related regulatory credits. Energy generation and storage plus services and other contributed roughly $25 billion combined. Reliance on vehicle deliveries left the company vulnerable as EV sales dipped, and profits fell 46% year-over-year in 2025. Leadership is repositioning the company toward energy, Full Self-Driving subscriptions, AI, and robotics while ramping non-EV initiatives. Capital expenditure is planned to more than double to $20 billion in 2026, driving negative cash flow. Production of the Model S and Model X will end, representing about 2% of volume.
Read at TechCrunch
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