Tesla has seen a drop in annual revenue for the first time ever, according to its latest earnings report, for the fourth quarter and the 2025 overall review.
For the three months leading to the end of December, the automaker's revenue dropped by 3%, or US$24.901 billion, compared to the same time last year.
Net income took a heavier hit, down 61% for the fourth quarter, to the tune of $840 million.
For the next quarter, ending in April, analysts are expecting earnings per share to come in at $0.45, compared to $0.50 in Q4, and revenue of $23.23 billion.
The latest report found that the company's energy generation and storage were up by 25% in 2025, but automotive sales declined by 11%.
This comes as Tesla announced it would be ending production of both the Model S and Model X cars, with plans to use the manufacturing facilities to produce Optimus, instead, the company's line of humanoid robots.
There will also be an investment of $2 billion into Elon Musk's AI project, xAI.
"It's going to be a very big [capital expenditure] next year," Musk said on a post-report call with analysts.
“We're making big investments for an epic future.”
At the time of reporting, Tesla (NASDAQ: TSLA) was finished trading 0.1% higher at $431.46.
