Tesla's per-vehicle profit has fallen by about 40 percent, dropping to $2,140 in the four quarters through March 2026.
That is down from $3,438 a year earlier.
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Despite the decline, Tesla still leads the industry in profit per car for the fifth straight year. However, its advantage over rivals has shrunk dramatically.
Why Profits Are Shrinking
Nikkei Asia analyzed per-vehicle profits of seven major automakers, including Tesla, Toyota, and BYD. The report points to U.
S.
tariffs and the end of the $7,500 federal EV tax credit as key reasons for Tesla's lower earnings.
Intensifying competition from Chinese automakers also played a role.
Additionally, Tesla's income from selling regulatory carbon credits fell from $2.9 billion in fiscal 2024 to $1.7 billion in fiscal 2025 after U.
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S. environmental rules were eased.
In earlier years, Tesla's per-vehicle profit topped $6,170 in fiscal 2022 and 2023.
How Competitors Compare
Toyota came in second with about $2,104 per vehicle, roughly 20% less than the year before.
Its hybrid-heavy lineup helped shield it from the EV slowdown, leaving it less than $40 behind Tesla. A year earlier, the gap was over $600.
BYD ranked third, but its per-vehicle profit dropped 55% after China cut tax incentives for new energy vehicles.
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Stellantis and Ford both posted per-vehicle profits of around $925 in fiscal 2024, then slipped into the red in the latest fiscal year.
