Tesla’s Per-Vehicle Profit Drops 40%, Narrowing Gap With Toyota

Tesla remained the most profitable major automaker per vehicle in fiscal 2025, but that profit fell 40% year over year, narrowing the gap with Toyota. Tariffs, weaker EV demand, intensifying Chinese competition and lower carbon-credit sales all pressured margins across the sector.

Industry analysts noted that the profit compression reflects a broader shift as pure-EV makers face tougher conditions than in prior years, even as legacy automakers with diversified powertrain lineups have proven more resilient.