Tesla shares kicked off 2026 with a rough start, as the company lost its title of the world’s biggest electric vehicle maker to China’s BYD early this month due to a decline in deliveries.

Tesla’s vehicle production fell 7 per cent year on year in 2025, as Elon Musk signals company will pivot to humanoid robots.

Tesla enjoyed almost $5.7 billion of U.S. income in 2025 but paid $0 in federal income tax. Over the past three years, the Elon Musk-led company reported $12.5 billion of U.S. income on which its current federal tax was just $48 million.

CEO Elon Musk says the company will close down production of two older car models, S and X, and convert the Fremont factory to produce its Optimus robots instead.

Tesla has resumed US production of Model Y batteries with its in-house 4680 cells—more than two years after the company halted production of the Model Y with

Tesla’s upcoming fourth quarter earnings report, slated for release on Wednesday after the bell, comes at a time where investors are looking for a non-auto business catalysts for the stock.

Tesla CEO Elon Musk, who turned an upstart electric vehicle maker into an industry-changing powerhouse, is pulling the plug on the two models that helped get him there, as he struggles with another quarter of declining profits and car sales.

Tesla is set to report earnings after the market closes today, with traders expecting a sizable move from the electric vehicle maker's stock following the results.