Link: Tesla hits a grim milestone: its second straight year of decline

Tesla reported a decline in revenue and profits for the second consecutive year, complicating CEO Elon Musk's vision to lead in AI and robotics despite a growing global EV market. In the fourth quarter of 2025, Tesla's profits plummeted by 61%, bringing in $840 million on $24.9 billion in revenue.

Tesla's annual figures also saw a downturn, with a 3% decrease in both quarterly and annual revenue year over year. The company’s total earnings for 2025 were $3.8 billion on $94.8 billion in revenue.

Despite these setbacks, Tesla still managed to exceed Wall Street expectations. Analysts anticipated a revenue of $24.79 billion, slightly lower than the actual figures reported.

The drop in Tesla’s performance is attributed to an aging vehicle lineup and increased competition. Additionally, Elon Musk's divisive political actions and controversial public behavior have estranged many of Tesla's core liberal customer base.

Global EV sales, however, surged by 20% in 2025, even as Tesla’s sales declined with a 8.5% drop in vehicle sales compared to the previous year. Policy changes and market dynamics are expected to decelerate this growth slightly in 2026.

Musk remains optimistic about Tesla's future, particularly its AI and robotaxi ventures, despite admitting the road ahead will be challenging. His ambitious goals include significant advancements in autonomous and robotic technology, aiming to revolutionize transportation. #

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