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Tesla tops estimates for quarter, but wraps up first annual revenue drop on record
Tesla reported better-than-expected fourth-quarter results after the bell on Wednesday, but revenue for the year dropped 3%, the first time on record the company has recorded an annual decline. The stock rose 2% in extended trading.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Auto sales have been sluggish in recent quarters for Tesla, as the company faces an onslaught of competition in various parts of the world, most notably from BYD in China.
Revenue in the fourth quarter slid 3% from $25.7 billion a year earlier, with the auto segment falling 11% to $17.7 billion from $19.8 billion.
Full-year revenue fell to $94.8 billion from $97.7 billion in 2024, the company said in an earnings release. The decline was caused, in part, by a "decrease in vehicle deliveries" and "lower regulatory credit revenue," Tesla said.
Tesla’s revenue and profit tumble to cap off rough 2025
Telsa’s revenue and profits tumbled in the fourth quarter, capping off the most difficult year for the electric automaker since it became profitable six years ago.
Tesla said Wednesday that its adjusted income fell 16% during the last three months of 2025. Its net income tumbled further, plunging 61% in the quarter and 46% for the year, or a $3.3 billion decline.
The drop didn’t come as a surprise – the company posted its biggest year-over-year sales volume drop ever in the fourth quarter. Tesla’s earning have fallen in nine of the last ten quarters. As of 2025, the company’s annual income is only 30% of the $12.6 billion it was in 2022, its peak earnings year.
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Elon Musk pivots Tesla to robotics and AI as car business flails
High hopes for Optimus robot help company beat forecasts despite yearly revenue decline and flailing car business
In the clearest sign yet that Tesla is pivoting away from its electric car business, CEO Elon Musk announced on Wednesday’s investor call that the company would discontinue production of its Model X SUV and Model S full-size sedan.
“It’s time to basically bring the Model S and X programs to an end,” Musk said. “We expect to wind down S and X production next quarter.”
The model S and X factory in Fremont, California would be converted to produce Tesla’s upcoming Optimus robot, Musk said.
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