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Elon Musk’s Tesla reports first-ever annual decline in revenue

Elon Musk’s Tesla reports first-ever annual decline in revenue

Summary

Tesla reported its first-ever drop in annual revenue, with a 3% decrease to $94.8 billion in 2025. The company's profits also fell significantly, and Tesla announced a $2 billion investment in Elon Musk's AI start-up, xAI. Meanwhile, other tech giants like Microsoft and Meta reported strong earnings.

Key Facts

  • Tesla’s annual revenue for 2025 was $94.8 billion, down from $97.7 billion in 2024.
  • In the last quarter of 2025, Tesla's revenue fell by 3% to $24.9 billion.
  • Tesla's net profit for the fourth quarter fell 61% to $840 million.
  • For the entire year, Tesla’s profit was $3.8 billion, down from $7.1 billion in 2024.
  • Tesla announced a $2 billion investment in Elon Musk's AI venture, xAI.
  • Tesla shares increased by about 2.2% in after-hours trading.
  • Microsoft announced a 60% increase in profit for the final quarter, with revenue of $81.3 billion.
  • Meta reported a profit of $22.8 billion on revenue of $59.9 billion, with a 6% increase in stock value after hours.

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