Tesla vehicle. Pexels Image.
This article presents Tesla’s gross profit breakdown by segment, consisting of automotive and energy. The automotive segment, on a consolidated basis, include profitability from the sales of regulatory credits.
Tesla’s automotive segment can be further broken down into several segments, consisting of automotive sales, automotive leasing, and services. We also will explore the gross profit of these divisions.
Let’s move on!
For other statistics of Tesla, you may find more information on the following page: Tesla key stats.
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Table Of Contents
Definitions And Overview
Insight & Summary of Observed Trends
Z1. Insight & Summary of Tesla’s Gross Profit By Segment
Automotive and Energy
A1. Automotive and Energy Gross Profit, Mix, and Growth
Automotive Segment Only
A2. Automotive Sales, Leasing, and Services Gross Profit, Mix, and Growth
Reference, Credits, and Disclosure
S1. References and Credits
S2. Disclosure
Definitions
To help readers understand the content better, the following terms and glossaries have been provided.
Regulatory Credits: Tesla’s regulatory credits are a form of government incentive designed to encourage the production of zero-emission vehicles (ZEVs).
Since Tesla exclusively manufactures electric vehicles, it earns these credits automatically and can sell them to other automakers that need them to comply with environmental regulations.
In the U.S., states like California require automakers to maintain a certain number of ZEV credits based on their total vehicle sales.
Companies that fall short must purchase credits from manufacturers with a surplus — like Tesla — allowing Tesla to generate revenue at a 100% profit margin.
Similar regulatory credit systems exist in China and the European Union, where Tesla also benefits from selling excess credits.
Tesla has historically relied on these credits to boost its profitability, though analysts debate whether this revenue stream is sustainable as more automakers transition to electric vehicles.
Insight & Summary of Tesla’s Gross Profit By Segment
The following analysis consolidates the trends observed across Tesla’s gross profit breakdown by segment for the 2016–2025 period.
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Tesla’s total gross profit scaled from $1.6B in 2016 to a peak of $20.9B in 2022, before retreating to $17.1B by 2025 — a decline driven almost entirely by automotive gross profit compression, which fell from $20.6B in 2022 to $13.3B in 2025, a 35% contraction over three years.
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Automotive sales have historically dominated the gross profit mix, peaking at 98% of total in 2023, but this concentration has since declined to 63% by 2025 as the energy segment emerged as a meaningful offset.
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The durability of total gross profit — holding relatively stable between $17.1B and $17.7B from 2023 to 2025 despite automotive headwinds — reflects the growing structural importance of energy generation in underpinning consolidated profitability.
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The energy segment’s gross profit trajectory is the most compelling story within the mix. After years of negligible or negative contribution — bottoming at -$129M in 2021 — energy gross profit surged to $3.8B in 2025, representing 22% of total gross profit, up from near-zero just four years prior.
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The 44% growth in energy gross profit in 2025 alone, against a backdrop of declining automotive gross profit, signals a genuine diversification of Tesla’s earnings base that was not evident until recently.
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Automotive leasing has remained a stable but modest contributor, consistently accounting for roughly 5–6% of total gross profit since 2022. Services, while small in absolute gross profit terms, turned positive in 2022 and has grown steadily to 6.2% of the mix by 2025, adding incremental diversification.
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The aggregate picture suggests Tesla’s gross profit engine is undergoing a structural rebalancing — away from a near-total dependence on automotive sales toward a more distributed mix — a transition that, if sustained, reduces earnings volatility and broadens the long-term profit foundation.
The table below combines Tesla’s gross profit by segment metrics into a single view for the latest three fiscal years.
Tesla’s Gross Profit by Segment — Averages (FY2023–FY2025)
| Metric | 3-Year Average (FY2023–FY2025) |
|---|---|
| Gross Profit Breakdown | |
| Automotive (with Regulatory Credits) | $14,874M |
| Energy | $2,528M |
| Consolidated | $17,401M |
| Gross Profit Mix | |
| Automotive (with Regulatory Credits) | 85.4% |
| Energy | 14.6% |
| Consolidated | 100.0% |
| Gross Profit Growth | |
| Automotive (with Regulatory Credits) | -13.4% |
| Energy | 157.2% |
| Consolidated | -6.2% |
| Automotive Gross Profit Breakdown | |
| Automotive Sales | $11,184M |
| Automotive Leasing | $830M |
| Services & Other | $678M |
| Consolidated (without Regulatory Credits) | $12,692M |
| Automotive Gross Profit Mix | |
| Automotive Sales | 87.9% |
| Automotive Leasing | 6.6% |
| Services & Other | 5.5% |
| Consolidated (without Regulatory Credits) | 100.0% |
| Automotive Gross Profit Growth | |
| Automotive Sales | -18.2% |
| Automotive Leasing | -5.5% |
| Services & Other | 69.7% |
| Consolidated (without Regulatory Credits) | -15.3% |
Averages cover FY2023–FY2025. Gross profit figures rounded to nearest whole million dollars. Mix and growth figures rounded to one decimal place.
Automotive and Energy Gross Profit, Mix, and Growth
View data as table
Gross Profit Breakdown ($ Millions) — By Fiscal Year
| Fiscal Year | Gross Profit Numbers — Automotive (with Regulatory Credits) | Gross Profit Numbers — Energy | Gross Profit Numbers — Consolidated |
|---|---|---|---|
| 2015 | $921M | $2M | $923M |
| 2016 | $1,596M | $3M | $1,599M |
| 2017 | $1,981M | $242M | $2,223M |
| 2018 | $3,852M | $190M | $4,042M |
| 2019 | $3,879M | $190M | $4,069M |
| 2020 | $6,612M | $18M | $6,630M |
| 2021 | $13,735M | -$129M | $13,606M |
| 2022 | $20,565M | $288M | $20,853M |
| 2023 | $16,519M | $1,141M | $17,660M |
| 2024 | $14,810M | $2,640M | $17,450M |
| 2025 | $13,292M | $3,802M | $17,094M |
Mix of Gross Profit (%) — By Fiscal Year
| Fiscal Year | Gross Profit Mix — Automotive (with Regulatory Credits) | Gross Profit Mix — Energy |
|---|---|---|
| 2015 | 99.8% | 0.2% |
| 2016 | 99.8% | 0.2% |
| 2017 | 89.1% | 10.9% |
| 2018 | 95.3% | 4.7% |
| 2019 | 95.3% | 4.7% |
| 2020 | 99.7% | 0.3% |
| 2021 | 100.9% | -0.9% |
| 2022 | 98.6% | 1.4% |
| 2023 | 93.5% | 6.5% |
| 2024 | 84.9% | 15.1% |
| 2025 | 77.8% | 22.2% |
Growth of Gross Profit (%) — By Fiscal Year
| Fiscal Year | Gross Profit Growth — Automotive (with Regulatory Credits) | Gross Profit Growth — Energy | Gross Profit Growth — Consolidated |
|---|---|---|---|
| 2016 | 73.3% | n.a. | 73.2% |
| 2017 | 24.1% | n.a. | 39.0% |
| 2018 | 94.4% | -21.5% | 81.8% |
| 2019 | 0.7% | 0.0% | 0.7% |
| 2020 | 70.5% | -90.5% | 62.9% |
| 2021 | 107.7% | -500.0% | 105.2% |
| 2022 | 49.7% | 323.0% | 53.3% |
| 2023 | -19.7% | 296.2% | -15.3% |
| 2024 | -10.3% | 131.4% | -1.2% |
| 2025 | -10.2% | 44.0% | -2.0% |
Tesla operates through two major segments: automotive and energy.
Tesla’s automotive gross profit includes the profit from sales of regulatory credits. You may find more information about Tesla’s regulatory credits here: regulatory credit.
Tesla’s Gross Profit from Automotive and Energy — Averages (FY2023–FY2025)
| Metric | 3-Year Average (FY2023–FY2025) |
|---|---|
| Gross Profit Breakdown | |
| Automotive (with Regulatory Credits) | $14,874M |
| Energy | $2,528M |
| Consolidated | $17,401M |
| Gross Profit Mix | |
| Automotive (with Regulatory Credits) | 85.4% |
| Energy | 14.6% |
| Consolidated | 100.0% |
| Gross Profit Growth | |
| Automotive (with Regulatory Credits) | -13.4% |
| Energy | 157.2% |
| Consolidated | -6.2% |
Averages cover FY2023–FY2025. Gross profit figures rounded to nearest whole million dollars. Mix and growth figures rounded to one decimal place.
Automotive Sales, Leasing, and Services Gross Profit, Mix, and Growth
View data as table
Automotive Gross Profit Breakdown ($ Millions) — By Fiscal Year
| Fiscal Year | Automotive Gross Profit Numbers — Automotive Sales | Automotive Gross Profit Numbers — Automotive Leasing | Automotive Gross Profit Numbers — Services & Other | Automotive Gross Profit Numbers — Consolidated |
|---|---|---|---|---|
| 2015 | $623M | $126M | $4M | $753M |
| 2016 | $1,019M | $280M | -$4M | $1,295M |
| 2017 | $1,451M | $399M | -$228M | $1,622M |
| 2018 | $3,527M | $395M | -$489M | $3,433M |
| 2019 | $3,419M | $410M | -$544M | $3,285M |
| 2020 | $4,908M | $489M | -$365M | $5,032M |
| 2021 | $11,710M | $664M | -$104M | $12,270M |
| 2022 | $17,611M | $967M | $211M | $18,789M |
| 2023 | $13,388M | $852M | $489M | $14,729M |
| 2024 | $10,610M | $824M | $613M | $12,047M |
| 2025 | $9,554M | $814M | $931M | $11,299M |
Mix of Automotive Gross Profit (%) — By Fiscal Year
| Fiscal Year | Automotive Gross Profit Mix — Automotive Sales | Automotive Gross Profit Mix — Automotive Leasing | Automotive Gross Profit Mix — Services & Other |
|---|---|---|---|
| 2015 | 82.7% | 16.7% | 0.5% |
| 2016 | 78.7% | 21.6% | -0.3% |
| 2017 | 89.5% | 24.6% | -14.1% |
| 2018 | 102.7% | 11.5% | -14.2% |
| 2019 | 104.1% | 12.5% | -16.6% |
| 2020 | 97.5% | 9.7% | -7.3% |
| 2021 | 95.4% | 5.4% | -0.8% |
| 2022 | 93.7% | 5.1% | 1.1% |
| 2023 | 90.9% | 5.8% | 3.3% |
| 2024 | 88.1% | 6.8% | 5.1% |
| 2025 | 84.6% | 7.2% | 8.2% |
Growth of Automotive Gross Profit (%) — By Fiscal Year
| Fiscal Year | Automotive Gross Profit Growth — Automotive Sales | Automotive Gross Profit Growth — Automotive Leasing | Automotive Gross Profit Growth — Services & Other | Automotive Gross Profit Growth — Consolidated |
|---|---|---|---|---|
| 2016 | 63.6% | 122.2% | n.a. | 72.0% |
| 2017 | 42.4% | 42.5% | n.a. | 25.3% |
| 2018 | 143.1% | -1.0% | 114.5% | 111.7% |
| 2019 | -3.1% | 3.8% | 11.2% | -4.3% |
| 2020 | 43.6% | 19.3% | -32.9% | 53.2% |
| 2021 | 138.6% | 35.8% | -71.5% | 143.8% |
| 2022 | 50.4% | 45.6% | -302.9% | 53.1% |
| 2023 | -24.0% | -11.9% | 131.8% | -21.6% |
| 2024 | -20.7% | -3.3% | 25.4% | -18.2% |
| 2025 | -10.0% | -1.2% | 51.9% | -6.2% |
Tesla’s automotive segment consists of automotive sales, automotive leasing, and services.
The automotive gross profit presented here EXCLUDES the profit from sales of regulatory credits. You may find more information about Tesla’s regulatory credits here: regulatory credit.
Tesla’s Automotive Gross Profit Breakdown — Averages (FY2023–FY2025)
| Metric | 3-Year Average (FY2023–FY2025) |
|---|---|
| Automotive Gross Profit Breakdown | |
| Automotive Sales | $11,184M |
| Automotive Leasing | $830M |
| Services & Other | $678M |
| Consolidated (without Regulatory Credits) | $12,692M |
| Automotive Gross Profit Mix | |
| Automotive Sales | 87.9% |
| Automotive Leasing | 6.6% |
| Services & Other | 5.5% |
| Consolidated (without Regulatory Credits) | 100.0% |
| Automotive Gross Profit Growth | |
| Automotive Sales | -18.2% |
| Automotive Leasing | -5.5% |
| Services & Other | 69.7% |
| Consolidated (without Regulatory Credits) | -15.3% |
Averages cover FY2023–FY2025. Gross profit figures rounded to nearest whole million dollars. Mix and growth figures rounded to one decimal place.
References and Credits
1. All financial figures presented were obtained and referenced from the company’s quarterly and annual reports published on the company’s investor relations page: Tesla Annual and Quarterly Results.
2. Pexels Images.
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