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Tesla, Inc. (TSLA)
Fiscal year ended Dec 31, 2025 · 10-K filed Jan 29, 2026 · All figures in USD millions unless stated
Source: Tesla FY2025 10-K (SEC EDGAR accession 0001628280-26-003952), Note 2 (Revenue Disaggregation) & Note 19 (Segment Reporting)
Revenue by product line (FY2025 vs FY2024 vs FY2023)
| Product line |
2025 ($M) |
2024 ($M) |
2023 ($M) |
YoY 25/24 |
2yr CAGR |
% of 2025 rev |
| Total revenues |
94,827 | 97,690 | 96,773 |
−2.9% | −1.0% | 100.0% |
| Automotive sales |
65,821 | 72,480 | 78,509 |
−9.2% | −8.4% | 69.4% |
| Automotive regulatory credits |
1,993 | 2,763 | 1,790 |
−27.9% | +5.5% | 2.1% |
| Automotive leasing |
1,712 | 1,827 | 2,120 |
−6.3% | −10.1% | 1.8% |
| Energy generation & storage — sales |
12,270 | 9,564 | 5,515 |
+28.3% | +49.2% | 12.9% |
| Energy generation & storage — leasing |
501 | 522 | 520 |
−4.0% | −1.8% | 0.5% |
| Services & other |
12,530 | 10,534 | 8,319 |
+18.9% | +22.7% | 13.2% |
What each product line actually is (plain English)
Automotive sales — $65.8B (69% of revenue)
What it is: Cars Tesla builds and sells outright. The mass-market Model Y (compact SUV — the single biggest revenue contributor, also the best-selling car in the world by unit) and Model 3 (sedan) together make up the vast majority of volume. The low-volume halo products are Model S (luxury sedan) and Model X (luxury SUV). Newer additions: Cybertruck (angular stainless-steel pickup, launched late-2023) and Semi (Class-8 electric freight truck, still in limited production).
How revenue is recognized: at the moment a customer takes delivery of the vehicle.
Why it fell 9.2% YoY / 8.4% CAGR: average selling prices dropped as Tesla cut list prices repeatedly to defend market share against Chinese OEMs (BYD in particular) and legacy automakers' EV lineups; unit volume was also softer than 2022–2023 peaks. The refresh cycle for Models 3/Y is aging and Cybertruck has been a commercial disappointment relative to initial reservation counts.
Automotive regulatory credits — $2.0B (2% of revenue)
What it is: Near-100% gross-margin money from other automakers. Governments (US states under CARB, the EU, China, etc.) require legacy automakers to sell some minimum share of zero-emission vehicles. When Ford, Stellantis, or GM can't hit their quota, they buy "ZEV credits" from Tesla — which earns credits automatically every time it sells an EV.
Why this matters: it's almost pure profit — there are essentially no COGS against it. But it's structurally declining: as other OEMs electrify their own fleets, their need to buy credits goes to zero. The −27.9% YoY drop in 2025 is the single clearest sign this line is shrinking toward irrelevance. When it goes away, ~$2B of roughly 100%-margin profit disappears — a direct hit to operating income that won't show up in any revenue rollup because by then the line will have vanished.
Automotive leasing — $1.7B (2% of revenue)
What it is: Tesla's own leasing program — the customer doesn't own the car, they pay a fixed monthly amount and return it at lease-end. Tesla keeps the vehicle on its balance sheet as a leased asset and recognizes the monthly payments as revenue over the 2- or 3-year lease term.
Why it's small: Tesla historically hasn't pushed leasing hard (until recently it didn't let lessees buy out the car at lease-end — it planned to repurpose them into a future robotaxi fleet). A shrinking line because new-car prices fell (lower prices → lower lease payments per car) and Tesla has shifted toward third-party financing.
Energy generation & storage — sales — $12.3B (13% of revenue, +28% YoY)
What it is: This is the
growth engine. Three distinct products:
- Megapack (by far the biggest): utility-scale lithium-iron-phosphate battery containers (each ~3.9 MWh) that power companies buy to firm up wind/solar generation and provide grid frequency regulation. A single utility project can be $100M+. Tesla's Lathrop, CA "Megafactory" (and a second in Shanghai) is the main production site.
- Powerwall: ~13.5 kWh lithium battery for homes — backs up the house during outages, stores daytime solar for nighttime use.
- Solar panels & Solar Roof: residential rooftop solar (Solar Roof uses glass shingles that look like regular roof tiles).
Why it grew 28%: Megapack demand is outstripping supply. Utilities worldwide need grid-scale storage to integrate renewables, and Megapack has become the market-leading product by reliability + $/kWh. This is the line bulls point to as the "Tesla is an energy company, not a car company" thesis.
Energy generation & storage — leasing — $0.5B (0.5% of revenue)
What it is: Solar leasing — customer installs Tesla solar panels but doesn't buy them; Tesla owns the system and the customer pays monthly (similar economics to Sunrun). A legacy of the SolarCity acquisition that's been wound down over the years.
Services & other — $12.5B (13% of revenue, +19% YoY)
What it is: Everything that isn't selling a new car or a battery. Main components:
- Used-car sales (Tesla resells off-lease and trade-in vehicles).
- Out-of-warranty service & repairs (fleet is aging → more service events).
- Supercharging — including revenue from non-Tesla EVs now that Ford, GM, Rivian, Hyundai, etc. have adopted Tesla's NACS plug standard. Every non-Tesla charging session is high-margin incremental revenue.
- Merchandise, body shop, paid software features, insurance.
Why it grew 19%: the installed fleet keeps getting bigger (more cars out in the world = more service, more Supercharging) and NACS-adoption means every US fast-charge network now sends paying non-Tesla customers to Tesla Superchargers.
Revenue & gross profit by reportable segment
Tesla reports two segments. The split is the same as the product view, just rolled up: Automotive segment = automotive sales + regulatory credits + automotive leasing + a small services allocation; Energy segment = energy sales + energy leasing.
| Segment |
2025 ($M) |
2024 ($M) |
2023 ($M) |
YoY 25/24 |
2yr CAGR |
2025 gross margin |
| Total revenues |
94,827 | 97,690 | 96,773 |
−2.9% | −1.0% | 18.0% |
| Automotive segment |
82,056 | 87,604 | 90,738 |
−6.3% | −4.9% | 16.2% |
| Energy gen & storage segment |
12,771 | 10,086 | 6,035 |
+26.6% | +45.3% | 29.8% |
Gross profit by segment ($M)
| Segment |
2025 GP |
2024 GP |
2023 GP |
2025 GM % |
2024 GM % |
2023 GM % |
| Total |
17,094 | 17,450 | 17,660 |
18.0% | 17.9% | 18.2% |
| Automotive |
13,292 | 14,810 | 16,519 |
16.2% | 16.9% | 18.2% |
| Energy |
3,802 | 2,640 | 1,141 |
29.8% | 26.2% | 18.9% |
Revenue by geography
| Region |
2025 ($M) |
2024 ($M) |
2023 ($M) |
YoY 25/24 |
2yr CAGR |
% of 2025 |
| United States |
47,627 | 47,725 | 45,235 |
−0.2% | +2.6% | 50.2% |
| China |
20,962 | 20,944 | 21,745 |
+0.1% | −1.8% | 22.1% |
| Other international |
26,238 | 29,021 | 29,793 |
−9.6% | −6.1% | 27.7% |
What this mix tells you
- The core auto business is in real decline. Automotive sales revenue has gone from $78.5B (2023) → $72.5B (2024) → $65.8B (2025) — an 8.4% 2-year CAGR downward. Auto segment gross margin compressed from 18.2% to 16.2% over the same span as Tesla cut prices to defend share.
- Energy is the only thing masking the headline. Energy sales went from $5.5B to $12.3B in 2 years (+49% CAGR); gross margin expanded from 18.9% to 29.8%. It now contributes $3.8B of gross profit — more than a quarter of the company's gross profit pie, vs. <7% in 2023.
- Regulatory credits are a silent profit time-bomb. −28% in 2025 alone. That's ~$2B of near-100%-margin revenue that is structurally going away as other OEMs electrify — and the market's models often don't haircut this line enough.
- "Other international" (i.e. mostly Europe) is the weak region. −9.6% YoY is a real demand signal, not just an FX effect — competitive pressure from BYD, MG, and refreshed EU models is visible here first.
- Services & Supercharging are a quiet durable tailwind. +19% YoY, set to keep compounding with (a) the aging installed base needing more service and (b) every non-Tesla EV in North America now plugging into Tesla Superchargers.
The bear-vs-bull framing in one line
- Bull: Energy CAGR is explosive and under-appreciated; Megapack TAM is enormous; Services/Supercharging compound with the fleet.
- Bear: 88% of revenue is still cars, cars are declining, regulatory credits are melting, pricing power is gone, and a ~140× EV/EBITDA has to be justified almost entirely by robotaxi/FSD narrative because the backward-looking numbers show a shrinking lower-margin company.
Data extracted programmatically from SEC EDGAR filing 0001628280-26-003952 (TSLA 10-K, R44/R93/R94). Layman explanations written by Claude.