Tesla’s operating profit improved to 4.1% from 2.1% in the first quarter. Still, margins were down from 6.3% a year ago.
Tesla delivered less cars in the second quarter of 2025, compared with the year-ago period, so some profit margin deterioration was expected. Tesla mitigated the impact of lower volume with lower costs. The average realized price was down about $500 year over year, but the cost to produce cars was down about $600.
Zero-emission vehicle credit sales amounted to $439 million in the quarter, down from $595 million in the first quarter of this year and $890 million in the second quarter of 2024. Credit sales will be in focus on the earnings conference call, since President Donald