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

Musk’s electrical car institution says it volition put $2bn successful artificial quality start-up arsenic portion of pivot distant from car market.

Tesla has reported its first-ever diminution successful yearly gross connected a engaged time for firm net that besides saw the merchandise of results from Microsoft, Meta and Samsung Electronics.

Elon Musk’s electrical car institution said connected Wednesday that gross fell 3 percent year-on-year to $24.9bn successful the last 4th of 2025. Revenue for each of 2025 was $94.8bn, down from $97.7bn the erstwhile year.

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Net nett fell 61 percent to $840m successful the quarter, taking nett for the twelvemonth to $3.8bn, down sharply from $7.1bn successful 2024.

The Austin, Texas-based institution besides revealed that it had agreed to put $2bn successful Musk’s artificial quality start-up xAI – the developer of Musk’s arguable Grok chatbot – arsenic portion of a propulsion to lessen its reliance connected the car market.

“Together, the concern and the related model statement are intended to heighten Tesla’s quality to make and deploy AI products and services into the carnal satellite astatine scale,” the institution said successful its net report.

Tesla shares rose astir 2.2 percent successful after-hours trading.

Also connected Wednesday, tech giants Microsoft, Meta and Samsung reported beardown net successful their latest reports to shareholders.

Meta, the genitor institution of Facebook and Instagram, reported a nett of $22.8bn connected gross of $59.9bn successful the October-December period, a 6 percent emergence year-on-year.

Meta shares surged astir 7 percent successful extended-hours trading.

Microsoft said nett roseate 60 percent to $38.5bn successful the last quarter, based connected gross of $81.3bn.

“We are lone astatine the opening phases of AI diffusion and already Microsoft has built an AI concern that is larger than immoderate of our biggest franchises,” Microsoft CEO Satya Nadella said successful a statement.

“We are pushing the frontier crossed our full AI stack to thrust caller worth for our customers and partners.”

Despite its beardown earnings, Microsoft’s announcement that superior spending deed a grounds $37.5bn successful the 2nd 4th stoked fears of an AI concern bubble, sending banal prices sharply lower.

Microsoft’s shares fell much than 6 percent successful after-hours trading connected Wednesday.

Samsung Electronics, the biggest shaper of representation chips globally, reported a nett of 20.1 trillion won ($13.98bn) connected gross of 93.8 trillion won ($65.6bn), a much than three-fold emergence from the erstwhile year.