Summary
Tesla has reported its first-ever drop in annual revenue as it shifts focus from electric vehicles to artificial intelligence and robotics. The company plans to stop producing certain car models to focus on these new areas and has invested heavily in a new AI venture. Despite financial challenges, Tesla's stock saw a slight increase in after-hours trading.
Key Facts
- Tesla's revenue fell by 3% in 2025, marking its first annual revenue drop.
- Profits dropped by 61% in the last three months of 2025.
- Tesla is ending production of its Model S and Model X cars to make humanoid robots.
- Tesla invested $2 billion in Elon Musk's AI project called xAI.
- There were more votes against than in favor of Tesla's investment in xAI during a shareholder vote.
- Tesla's spending is expected to increase by about $20 billion in the next year.
- The company's shares rose by about 2% in extended trading.
- Tesla's shift coincides with changes in U.S. government subsidies for non-fossil fuel vehicles under President Trump.
