Tesla has seen its revenue and deliveries rise again this quarter. However, it is the company's profits and margins that haven't kept up. According to Q2 figures released yesterday, Tesla's automotive gross margin decreased to 16.7 percent, down from 17.2 percent one year prior and 21.1 percent in Q1. Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at only $3.3 billion when $4 billion had been expected, while net income attributable to stockholders was also down in the automotive as well as Tesla's other segments.
The company has been struggling in its core market of electric cars amid heightened competition from China as well as geopolitical issues like tariffs and the war in Iran. The company also gave out discounts and discounted car loan rates, explaining why more deliveries coincided with less profit. Figures by Tesla show that its automotive revenue per delivery had still stood at more than $50,000 in 2021, but that this had now decreased to below $43,000.
Tesla at the same time increased investments in factories and battery manufacturing facilities, which also caused its profit margin to shrink.
As the following infographic shows, after peaking at almost 30 percent in early 2022, Tesla's profit margin fell below 20 percent at the beginning of 2023. After a slight recovery in Q4 of 2025 and Q1 of 2026, the latest quarter saw the profit margin fall near all-time lows again.
