Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Tesla Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Automotive sales	65,821)	72,480)	78,509)	67,210)	44,125)
Automotive regulatory credits	1,993)	2,763)	1,790)	1,776)	1,465)
Automotive leasing	1,712)	1,827)	2,120)	2,476)	1,642)
Automotive revenues	69,526)	77,070)	82,419)	71,462)	47,232)
Energy generation and storage	12,771)	10,086)	6,035)	3,909)	2,789)
Services and other	12,530)	10,534)	8,319)	6,091)	3,802)
Revenues	94,827)	97,690)	96,773)	81,462)	53,823)
Automotive sales	(56,267)	(61,870)	(65,121)	(49,599)	(32,415)
Automotive leasing	(898)	(1,003)	(1,268)	(1,509)	(978)
Automotive cost of revenues	(57,165)	(62,873)	(66,389)	(51,108)	(33,393)
Energy generation and storage	(8,969)	(7,446)	(4,894)	(3,621)	(2,918)
Services and other	(11,599)	(9,921)	(7,830)	(5,880)	(3,906)
Cost of revenues	(77,733)	(80,240)	(79,113)	(60,609)	(40,217)
Gross profit	17,094)	17,450)	17,660)	20,853)	13,606)
Research and development	(6,411)	(4,540)	(3,969)	(3,075)	(2,593)
Selling, general and administrative	(5,834)	(5,150)	(4,800)	(3,946)	(4,517)
Restructuring and other	(494)	(684)	—)	(176)	27)
Operating expenses	(12,739)	(10,374)	(8,769)	(7,197)	(7,083)
Income from operations	4,355)	7,076)	8,891)	13,656)	6,523)
Interest income	1,680)	1,569)	1,066)	297)	56)
Interest expense	(338)	(350)	(156)	(191)	(371)
Other income (expense), net	(419)	695)	172)	(43)	135)
Income before income taxes	5,278)	8,990)	9,973)	13,719)	6,343)
(Provision for) benefit from income taxes	(1,423)	(1,837)	5,001)	(1,132)	(699)
Net income	3,855)	7,153)	14,974)	12,587)	5,644)
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries	(61)	(62)	23)	(31)	(125)
Net income attributable to common stockholders	3,794)	7,091)	14,997)	12,556)	5,519)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The financial performance presented indicates a period of significant growth followed by stabilization and a subsequent decline in certain key areas. Revenues experienced substantial increases between 2021 and 2023, peaking at US$96.773 billion, before exhibiting a slight decrease in 2024 and a more pronounced decline in 2025. Automotive revenues constitute the largest portion of total revenues, demonstrating a similar growth and decline pattern. Energy generation and storage, and services and other revenue streams consistently increased throughout the period, though their contribution remains smaller relative to automotive sales.

Cost of revenues increased consistently alongside revenue growth, peaking in 2024 at US$80.240 billion. While cost of revenues initially tracked revenue increases, the rate of increase slowed in 2025, resulting in a slightly improved gross profit margin. Gross profit remained relatively stable between 2023 and 2025, fluctuating around US$17 billion. Operating expenses increased steadily throughout the period, with a particularly notable rise in 2024 and 2025, driven primarily by increases in research and development and selling, general and administrative expenses.

Income from operations peaked in 2022 at US$13.656 billion, then declined significantly in subsequent years, reaching US$4.355 billion in 2025. Interest income increased substantially over the period, while interest expense remained relatively stable. Other income (expense), net, experienced significant volatility. Net income followed a similar trajectory to income from operations, peaking in 2023 at US$14.974 billion and declining to US$3.855 billion in 2025. Net income attributable to common stockholders mirrored this trend.

Revenue Growth: Revenue demonstrated strong growth from 2021 to 2023, with a compound annual growth rate of approximately 31.8%. However, growth slowed considerably in 2024 and reversed in 2025, indicating potential market saturation or increased competition. The decline in automotive sales in 2024 and 2025 is a primary driver of this slowdown.
Profitability: Gross profit margin remained relatively stable, fluctuating between 17.3% and 18.8% over the period. However, operating margin decreased significantly from 11.2% in 2022 to 4.5% in 2025, reflecting the increasing operating expenses. Net profit margin also experienced a substantial decline, from 15.4% in 2023 to 4.1% in 2025.
Expense Management: While cost of revenues increased with revenue, the more rapid increase in operating expenses, particularly research and development and selling, general and administrative expenses, significantly impacted profitability. Restructuring and other expenses also contributed to increased operating costs in 2024 and 2025.
Regulatory Credits: Automotive regulatory credits contributed a notable portion of automotive revenues, particularly in the earlier years. While remaining substantial, the contribution from regulatory credits showed some fluctuation, with a decrease observed in 2025. This suggests a potential shift in the company’s reliance on these credits.
Tax Rate Volatility: The provision for income taxes exhibited significant volatility, shifting from a net expense to a net benefit in 2023, and then back to a net expense in 2024 and 2025. This suggests changes in tax laws, jurisdictional mix of earnings, or utilization of tax credits and loss carryforwards.

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Tesla Inc. (NASDAQ:TSLA)

Income Statement