Key Highlights
- Tesla reported total revenue of $28.1 billion for Q3 2025, up 12% year-on-year.
- Net income stood at $1.4 billion (official accounting figure under GAAP).
- Adjusted net income was $1.8 billion (excludes stock-based and digital asset adjustments).
- Free cash flow reached a record $3.99 billion.
- Vehicle deliveries increased 7% to 497,099 units.
- Energy storage deployments rose 81% to 12.5 GWh.
Tesla Q3 2025 Financial Results
Tesla Inc. released its financial results for the third quarter of 2025, reporting total revenue of $28.1 billion, a 12% increase compared to the same period last year. Growth was driven by higher vehicle deliveries and energy storage deployments.
Automotive revenue reached $21.2 billion, while energy generation and storage revenue rose 44% to $3.4 billion. Services and other revenue grew 25% to $3.5 billion. Operating income was $1.6 billion, representing a 40% decline year-on-year, with an operating margin of 5.8%.
The decline in profitability was attributed to higher operating expenses, lower regulatory credit revenue, and reduced one-time Full Self-Driving (FSD) revenue recognition compared to the previous year.
Cash and Deliveries
Tesla ended the quarter with $41.6 billion in cash, cash equivalents, and investments, an increase of $4.9 billion from the previous quarter. Operating cash flow was $6.2 billion, and free cash flow reached a record $3.99 billion.
The company delivered 497,099 vehicles globally, up 7% from a year earlier. Model 3 and Model Y accounted for most of the deliveries. Energy storage deployments reached 12.5 GWh, representing an 81% increase year-on-year.
Product and Market Updates
In the United States, Tesla launched the Model 3 Standard and Model Y Standard, priced from $36,990 and $39,990 respectively. It also introduced the Model Y Performance and leasing options for certified pre-owned vehicles.
In Asia, Tesla released the Model YL, a longer wheelbase version of the Model Y in China, and began deliveries in India. Europe’s Gigafactory Berlin reached production of its 100,000th refreshed Model Y and started producing the Model Y Performance.
Technology and Software Developments
Tesla continued the rollout of version 14 of FSD (Supervised) and expanded its Robotaxi testing in Austin and the Bay Area. The company also announced a semiconductor production partnership with Samsung in the United States.
Software updates introduced features such as the Grok AI assistant, Low Power Mode, and synchronized interior lighting. The Robotaxi app became available for download in the United States and Canada.
Energy and Infrastructure Expansion
Energy storage deployments reached record levels, supported by Megafactory Shanghai. Gross profit from energy operations rose to $1.1 billion. Tesla introduced Megablock, a medium-voltage industrial storage product that integrates four Megapack 3 units.
The Supercharger network grew by 18% year-on-year, with the launch of V4 Superchargers providing up to 500 kW for passenger vehicles and 1,200 kW for the Tesla Semi.
Outlook
Tesla stated that it will continue to focus on operational efficiency, cost management, and expansion of its product and technology portfolio. The company confirmed that Cybercab, Tesla Semi, and Megapack 3 are on schedule for volume production in 2026.