Tesla said net profit fell 61% year on year in the fourth quarter, dropping to $840 million from $2.1 billion in the same period of 2024, according to its financial results. For the full year, net profit declined by 46% to $3.8 billion, News.Az reports, citing foreign media.
Revenue also weakened. In the fourth quarter, Tesla’s revenue slipped 3% year on year to $24.9 billion, down from $25.7 billion a year earlier. Annual revenue for 2025 fell by the same margin, declining to $94.8 billion.
Earnings per share dropped sharply as well, falling to $0.24 in the fourth quarter of 2025 from $0.60 in the corresponding period of 2024. Despite the quarterly decline, Tesla said both revenue and profit exceeded market expectations.
Tesla produced 434,358 vehicles globally in the fourth quarter of 2025 and delivered 418,227 units. Vehicle production during the period fell 5.5% year on year, while deliveries dropped by a steeper 15.6%.
For the full year, Tesla’s total vehicle production reached 1,654,667 units, with deliveries amounting to 1,636,129 vehicles.
The company said it plans to increase investment this year in infrastructure supporting clean energy, transportation, and autonomous robotics. Tesla also disclosed that it signed an agreement on Jan. 16 to acquire shares in the artificial intelligence firm xAI for approximately $2 billion.
Tesla’s sales have fallen rapidly this year, particularly in Europe. The company attributed the slowdown partly to intensifying competition from Chinese automakers, especially rival BYD, as well as to the political controversy surrounding chief executive Elon Musk and his growing involvement in political debates.
