Tesla’s operating profit rose to 4.1% in the second quarter, up from 2.1% in the first quarter. Despite the improvement, margins were lower than the 6.3% reported a year ago.

Due to lower car deliveries in the second quarter of 2025, Tesla expected some profit margin decline. The company managed to offset this with cost reductions, resulting in a decrease of $500 in average realized price and $600 in production costs compared to the previous year.

Zero-emission vehicle credit sales for Tesla totaled $439 million in the second quarter, a decrease from $595 million in the first quarter of 2025 and $890 million in the second quarter of 2024. This decline will be a key topic in the upcoming earnings conference call, especially under President Donald’s administration.

Read more at Dow Jones & Company: Operating Profit, Free Cash Flow, and More Numbers for Investors