Tesla profits pulled down by falling EV sales and regulatory credits

Falling EV sales combined with a lower average selling price, less cash from regulatory credits, and a decline in solar and energy storage revenue took a toll on Tesla’s bottom line in the second quarter of 2025. And a 17% growth in revenue in its services business, which includes capital generated from its Supercharging network, wasn’t enough to close the gap.

The company reported Wednesday revenue of $22.5 billion, a 12% decline from the same period last year. The company’s Q2 revenue results did show an improvement over the first quarter…