Tesla reports first ever annual revenue decline as China’s EV giants zoom ahead

Tesla confirmed that its annual revenues fell for the first time in the company’s history last year, as the firm announced plans to pivot towards humanoid robots and possibly build its own semiconductor factories during an earnings call on Wednesday.The US-based company reported total revenues of US$94.8 billion for 2025, down by 3 per cent compared with the previous year. But revenues and gross profits beat analysts’ estimates in the final quarter of last year, coming in at US$24.9 billion and US$5 billion, respectively.Tesla’s stock price surged in after-hours trading following the announcements.The firm’s automotive production declined 7 per cent and total deliveries fell 9 per cent in 2025 from a year earlier, according to the company’s financial statement, as Tesla struggles to fend off fierce competition from Chinese electric vehicle makers such as BYD in the global market.Tesla CEO Elon Musk’s political activities, especially his previous affiliation with US President Donald Trump, may also have had an impact on sales, especially in the European market.Musk announced that the company would start winding down production of its Model S and Model X electric cars from next quarter and repurpose its California factory to manufacture Optimus, Tesla’s flagship humanoid robot.The long-term goal was to produce 1 million robots per year at the Fremont facility, Musk said, adding that Tesla would unveil the Optimus 3 robot in the next quarter.