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's Q4 2025 financial results show surprising resilience despite declining sales and increased investments in AI data centers and robotics

Tesla is looking back on a weak year. Deliveries fell by nine per cent to around 1.6 million vehicles. For the first time in its history, the electric car

Elon Musk’s Tesla has experienced its first ever annual revenue decline after the world’s richest man faced a backlash over his ties to Donald Trump.

As a result, total revenues for 2025 only fell by 3 percent. But Tesla saw a 38 percent drop in income from operations, and its expenses went up by 23 percent. As a result, the company’s once-envied profit margin was just 4.9 percent for the year, down from 7.2 percent last year. (In 2022, Tesla had a 23.8 percent profit margin.)

Though Tesla sales in Europe collapsed last year as it lost ground to rivals, its shares continue to outperform the broader market.

The Fremont factory will still manufacture Model 3 and Y, but the space where Model S and X are made will instead focus on mass production of Tesla's Gen 3 Optimus robots.