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

South China Morning PostCenter-RightEN 1 min read 100% complete by Xiaofei XuJanuary 29, 2026 at 03:25 AM

AI Summary

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In 2025, Tesla reported its first annual revenue decline in company history, with revenues falling 3% to $94.8 billion. Despite this, the company's Q4 revenues and gross profits exceeded analyst expectations, leading to a surge in after-hours trading. Automotive production and deliveries also decreased by 7% and 9% respectively, as Tesla faces increasing competition from Chinese EV manufacturers like BYD. Tesla CEO Elon Musk announced plans to repurpose its California factory to manufacture its Optimus humanoid robot, with a long-term goal of producing 1 million robots per year. The company also plans to wind down production of its Model S and Model X vehicles.

Key Entities & Roles

Key Player Opposition Context

California 30% Donald Trump 40% United States 50% BYD 60% China 70% Elon Musk ×280% Tesla ×7100%

Keywords

tesla 100% revenue decline 90% electric vehicles 80% humanoid robots 70% optimus robot 60% automotive production 60% elon musk 60% byd 50% semiconductor factories 50% stock price 40%