Revenue growth has stalled and margins have compressed, with gross margin down to 16.8% in 2026Q2 from 19.8% in 2024Q3, and operating margin falling to 1.4% as R&D and SG&A expenses outpaced revenue growth.
Tesla, Inc. (TSLA) annual income statement — 19-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Sales/Revenue | 103.62B | 94.83B | 97.69B | 96.77B | 81.46B | 53.82B | 31.54B | 24.58B | 21.46B | 11.76B | 7B | 4.05B | 3.2B | 2.01B | 413.26M | 204.24M | 116.74M | 111.94M | 14.74M | 73K |
| Revenue Growth % | 11.75% | -2.93% | 0.95% | 18.8% | 51.35% | 70.67% | 28.31% | 14.52% | 82.51% | 67.98% | 73.01% | 26.5% | 58.85% | 387.23% | 102.34% | 74.95% | 4.29% | 659.35% | 20094.52% | - |
| Cost of Goods Sold | 84.08B | 77.73B | 80.24B | 79.11B | 60.61B | 40.22B | 24.91B | 20.51B | 17.42B | 9.54B | 5.4B | 3.12B | 2.32B | 1.56B | 383.19M | 142.65M | 86.01M | 102.41M | 15.88M | 9K |
| COGS % of Revenue | - | 81.97% | 82.14% | 81.75% | 74.4% | 74.72% | 78.98% | 83.44% | 81.17% | 81.1% | 77.15% | 77.18% | 72.43% | 77.34% | 92.72% | 69.84% | 73.68% | 91.48% | 107.74% | 12.33% |
| Gross Profit | 19.53B | 17.09B | 17.45B | 17.66B | 20.85B | 13.61B | 6.63B | 4.07B | 4.04B | 2.22B | 1.6B | 923.5M | 881.67M | 456.26M | 30.07M | 61.59M | 30.73M | 9.54M | -1.14M | 64K |
| Gross Margin % | 18.85% | 18.03% | 17.86% | 18.25% | 25.6% | 25.28% | 21.02% | 16.56% | 18.83% | 18.9% | 22.85% | 22.82% | 27.57% | 22.66% | 7.28% | 30.16% | 26.32% | 8.52% | -7.74% | 87.67% |
| Gross Profit Growth % | - | -2.04% | -1.19% | -15.31% | 53.26% | 105.22% | 62.94% | 0.67% | 81.83% | 39% | 73.17% | 4.74% | 93.24% | 1417.48% | -51.19% | 100.43% | 222.3% | 935.67% | -1882.81% | - |
| Operating Expenses | 15.16B | 12.74B | 10.37B | 8.77B | 7.2B | 7.11B | 4.64B | 4B | 4.43B | 3.85B | 2.27B | 1.64B | 1.07B | 517.54M | 424.35M | 313.08M | 177.57M | 61.43M | 77.36M | 80M |
| OpEx % of Revenue | - | 13.43% | 10.62% | 9.06% | 8.83% | 13.21% | 14.7% | 16.27% | 20.64% | 32.78% | 32.38% | 40.54% | 33.4% | 25.7% | 102.68% | 153.29% | 152.1% | 54.88% | 524.78% | 109584.93% |
| Selling, General & Admin | 7.03B | 5.83B | 5.15B | 4.8B | 3.95B | 4.52B | 3.15B | 2.65B | 2.83B | 2.48B | 1.43B | 922.23M | 603.66M | 285.57M | 150.37M | 104.1M | 84.57M | 42.15M | 23.65M | 17.24M |
| SG&A % of Revenue | - | 6.15% | 5.27% | 4.96% | 4.84% | 8.39% | 9.97% | 10.77% | 13.21% | 21.06% | 20.46% | 22.79% | 18.87% | 14.18% | 36.39% | 50.97% | 72.44% | 37.65% | 160.42% | 23621.92% |
| Research & Development | 7.73B | 6.41B | 4.54B | 3.97B | 3.08B | 2.59B | 1.49B | 1.34B | 1.46B | 1.38B | 834.41M | 717.9M | 464.7M | 231.98M | 273.98M | 208.98M | 93M | 19.28M | 53.71M | 62.75M |
| R&D % of Revenue | - | 6.76% | 4.65% | 4.1% | 3.77% | 4.82% | 4.73% | 5.46% | 6.8% | 11.72% | 11.92% | 17.74% | 14.53% | 11.52% | 66.3% | 102.32% | 79.66% | 17.22% | 364.36% | 85963.01% |
| Other Operating Expenses | 2M | 494M | 684M | 0 | 176M | 0 | 0 | 11M | 134.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 4.37B | 4.36B | 7.08B | 8.89B | 13.66B | 6.52B | 1.99B | -69M | -388M | -1.63B | -667.34M | -716.63M | -186.69M | -61.28M | -394.28M | -251.49M | -146.84M | -51.9M | -78.5M | -79.93M |
| Operating Margin % | 4.22% | 4.59% | 7.24% | 9.19% | 16.76% | 12.12% | 6.32% | -0.28% | -1.81% | -13.88% | -9.53% | -17.71% | -5.84% | -3.04% | -95.41% | -123.13% | -125.78% | -46.36% | -532.52% | -109497.26% |
| Operating Income Growth % | - | -38.45% | -20.41% | -34.89% | 109.35% | 227.13% | 2989.86% | 82.22% | 76.23% | -144.55% | 6.88% | -283.86% | -204.63% | 84.46% | -56.78% | -71.27% | -182.94% | 33.89% | 1.79% | - |
| EBITDA | 10.85B | 10.5B | 12.44B | 13.56B | 17.4B | 9.43B | 4.32B | 2.08B | 1.51B | 4M | 279.76M | -294.04M | 45.24M | 44.8M | -365.46M | -234.57M | -136.22M | -44.96M | -74.35M | -77.04M |
| EBITDA Margin % | 10.47% | 11.08% | 12.74% | 14.01% | 21.36% | 17.53% | 13.69% | 8.48% | 7.05% | 0.03% | 4% | -7.27% | 1.41% | 2.23% | -88.43% | -114.85% | -116.68% | -40.16% | -504.32% | -105531.51% |
| EBITDA Growth % | -4.38% | -15.6% | -8.22% | -22.09% | 84.47% | 118.58% | 107% | 37.81% | 37725% | -98.57% | 195.14% | -749.92% | 0.99% | 112.26% | -55.8% | -72.2% | -202.99% | 39.53% | 3.49% | - |
| D&A (Non-Cash Add-back) | 6.48B | 6.15B | 5.37B | 4.67B | 3.75B | 2.91B | 2.32B | 2.15B | 1.9B | 1.64B | 947.1M | 422.59M | 231.93M | 106.08M | 28.82M | 16.92M | 10.62M | 6.94M | 4.16M | 2.9M |
| EBIT | 5.55B | 5.62B | 9.34B | 10.13B | 13.91B | 6.71B | 1.9B | 20M | -342M | -1.74B | -547.54M | -756.77M | -183.75M | -38.49M | -395.82M | -253.88M | -153.16M | -53.18M | -78.94M | -78.05M |
| Net Interest Income | 1.41B | 1.34B | 1.22B | 910M | 106M | -315M | -718M | -641M | -639M | -452M | -190.28M | -117.34M | -99.76M | -32.74M | 34K | 212K | -734K | -2.37M | -3.22M | 1.75M |
| Interest Income | 1.74B | 1.68B | 1.57B | 1.07B | 297M | 56M | 30M | 44M | 24M | 19M | 8.53M | 1.51M | 1.13M | 189K | 288K | 255K | 258K | 159K | 529K | 1.75M |
| Interest Expense | 334M | 338M | 350M | 156M | 191M | 371M | 748M | 685M | 663M | 471M | 198.81M | 118.85M | 100.89M | 32.93M | 254K | 43K | 992K | 2.53M | 3.75M | 0 |
| Other Income/Expense | 845M | 923M | 1.91B | 1.08B | 63M | -180M | -840M | -596M | -617M | -577M | -79.01M | -159M | -97.95M | -10.14M | -1.79M | -2.43M | -7.32M | -3.82M | -4.18M | 1.89M |
| Pretax Income | 5.22B | 5.28B | 8.99B | 9.97B | 13.72B | 6.34B | 1.15B | -665M | -1B | -2.21B | -746.35M | -875.62M | -284.64M | -71.43M | -396.08M | -253.92M | -154.16M | -55.71M | -82.69M | -78.05M |
| Pretax Margin % | 5.03% | 5.57% | 9.2% | 10.31% | 16.84% | 11.78% | 3.66% | -2.71% | -4.68% | -18.79% | -10.66% | -21.64% | -8.9% | -3.55% | -95.84% | -124.32% | -132.05% | -49.77% | -560.88% | -106913.7% |
| Income Tax | 1.35B | 1.42B | 1.84B | -5B | 1.13B | 699M | 292M | 110M | 58M | 32M | 26.7M | 13.04M | 9.4M | 2.59M | 136K | 489K | 173K | 26K | 97K | 110K |
| Effective Tax Rate % | 25.93% | 26.96% | 20.43% | -50.15% | 8.25% | 11.02% | 25.3% | -16.54% | -5.77% | -1.45% | -3.58% | -1.49% | -3.3% | -3.62% | -0.03% | -0.19% | -0.11% | -0.05% | -0.12% | -0.14% |
| Net Income | 3.82B | 3.79B | 7.13B | 15B | 12.58B | 5.52B | 721M | -862M | -976M | -1.96B | -674.91M | -888.66M | -294.04M | -74.01M | -396.21M | -254.41M | -154.33M | -55.74M | -82.78M | -78.16M |
| Net Margin % | 3.68% | 4% | 7.3% | 15.5% | 15.45% | 10.26% | 2.29% | -3.51% | -4.55% | -16.69% | -9.64% | -21.96% | -9.19% | -3.68% | -95.88% | -124.56% | -132.19% | -49.79% | -561.54% | -107064.38% |
| Net Income Growth % | -37.02% | -46.79% | -52.46% | 19.2% | 127.79% | 666.16% | 183.64% | 11.68% | 50.25% | -190.7% | 24.05% | -202.23% | -297.28% | 81.32% | -55.74% | -64.85% | -176.87% | 32.67% | -5.92% | - |
| Net Income (Continuing) | 3.86B | 3.85B | 7.15B | 14.97B | 12.59B | 5.64B | 862M | -775M | -1.06B | -2.24B | -773.05M | -888.66M | -294.04M | -74.01M | -396.21M | -254.41M | -154.33M | -55.74M | -82.78M | -78.16M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 607M | 728M | 767M | 975M | 1.19B | 1.39B | 1.45B | 1.49B | 1.39B | 1.4B | 1.15B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.08 | 1.08 | 2.04 | 4.31 | 3.62 | 1.63 | 0.21 | -0.33 | -0.38 | -0.79 | -0.31 | -0.46 | -0.16 | -0.04 | -0.25 | -0.17 | -0.20 | -0.03 | -0.04 | -0.04 |
| EPS Growth % | -37.47% | -47.01% | -52.71% | 19.06% | 122.09% | 676.19% | 163.64% | 13.16% | 51.9% | -154.84% | 32.61% | -187.5% | -287.41% | 83.48% | -47.06% | 15% | -632.6% | 32.59% | -6.02% | - |
| EPS (Basic) | - | 1.18 | 2.23 | 4.73 | 4.02 | 1.87 | 0.25 | -0.33 | -0.38 | -0.79 | -0.31 | -0.46 | -0.16 | -0.04 | -0.25 | -0.17 | -0.20 | -0.03 | -0.04 | -0.04 |
| Diluted Shares Outstanding | 3.54B | 3.53B | 3.5B | 3.48B | 3.48B | 3.39B | 3.25B | 2.65B | 2.56B | 2.49B | 2.16B | 1.92B | 1.87B | 1.79B | 1.61B | 1.51B | 760.77M | 2.04B | 2.04B | 2.04B |
| Basic Shares Outstanding | 3.24B | 3.23B | 3.2B | 3.17B | 3.13B | 2.96B | 2.8B | 2.65B | 2.56B | 2.49B | 2.16B | 1.92B | 1.87B | 1.79B | 1.61B | 1.51B | 760.77M | 2.04B | 2.04B | 2.04B |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TSLA stock.
For fiscal year 2025, Tesla, Inc. (TSLA) reported total revenue of $94.83B. This represents a 129899900.0% increase compared to $0.1M in 2007.
Tesla, Inc. (TSLA) is profitable, generating $3.79B in net income for the fiscal year ending 2025 with a net profit margin of 4.0%.
Tesla, Inc. (TSLA) reported an operating income of $4.36B, resulting in an operating profit margin of 4.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Tesla, Inc. (TSLA) generated $17.09B in gross profit for the year, representing a gross profit margin of 18.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression and demand uncertainty
Metrics are mathematically derived from official filings.
Revenue Growth Stalls Amid Price Cuts
Tesla's revenue growth has turned negative year-over-year, with 2025Q4 down 3.1% and 2025Q2 down 11.8%, according to recent SEC filings, suggesting demand saturation and aggressive pricing.
The 25.5% revenue surge in 2026Q2 appears to be a rebound from a depressed base, but the preceding four quarters showed persistent declines, indicating that the company's price reductions have not yet restored sustainable growth. The mixed trajectory suggests that volume gains are being offset by lower average selling prices, and the lack of consistent top-line expansion may signal a maturing EV market.
Gross Margin Compression Reflects Pricing Pressure
Gross margin has contracted from 19.8% in 2024Q3 to 16.8% in 2026Q2, as reported in financial statements, indicating that price cuts are outpacing cost reductions and eroding profitability.
The decline in gross margin, despite a slight recovery in 2026Q1 to 21.1%, suggests that Tesla's pricing power is weakening in a competitive EV landscape. The company's gross margin remains above legacy peers like GM (10.9%) and Ford (12.2%), but the trend is concerning, and investors should monitor whether manufacturing innovations can offset further price reductions.
Operating Leverage Turns Negative
Operating income has fallen from $2.7B in 2024Q3 to $398M in 2026Q2, with operating margin dropping from 10.8% to 1.4%, based on reported figures, indicating that fixed costs are not being adequately absorbed.
The sharp decline in operating leverage suggests that Tesla's high fixed-cost base is vulnerable to volume fluctuations and price cuts. R&D and SG&A expenses have grown as a percentage of revenue, from 9.1% combined in 2024Q3 to 15.6% in 2026Q2, indicating that overhead is not scaling down with revenue, which may further pressure margins if the top line remains stagnant.
Earnings Quality Diminished by SBC and Tax Anomalies
Stock-based compensation has risen from $457M in 2024Q3 to $1.2B in 2026Q2, as per financial statements, inflating reported expenses and reducing the quality of net income, which also shows volatility.
The increasing SBC, now representing over 100% of operating income in 2026Q2, suggests that reported earnings are significantly overstated on a cash basis. Additionally, net income has been volatile, with a $2.3B profit in 2024Q4 followed by a $409M profit in 2025Q1, indicating that tax benefits or one-time items may be distorting underlying profitability. Investors should adjust for SBC and tax anomalies to assess true earnings power.
R&D and SG&A Outpace Revenue Growth
Combined R&D and SG&A expenses have grown from $2.3B in 2024Q3 to $4.4B in 2026Q2, as reported in financial statements, while revenue has only increased modestly, indicating a loss of cost discipline.
The surge in operating expenses, particularly R&D which nearly doubled from $1.0B to $2.4B, suggests that Tesla is investing heavily in future projects like AI and robotaxis, but this is compressing current profitability. The lack of corresponding revenue growth implies that these investments are not yet yielding returns, and investors should monitor whether these expenses translate into future top-line expansion or continue to erode margins.
Margin Compression May Be Structural, Not Cyclical
Despite a temporary rebound in 2026Q1, gross margins have trended downward from 19.8% to 16.8% over the past two years, based on reported data, suggesting that Tesla's competitive advantage is eroding.
Short-sellers would argue that Tesla's margin compression is not a temporary trough but a structural shift toward a standard automotive margin profile, as competition intensifies and price cuts become necessary to maintain volume. The company's reliance on regulatory credits and high-margin software to offset core automotive weakness may mask underlying deterioration, and the lack of a low-cost mass-market vehicle could leave Tesla vulnerable in a price-sensitive market.