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

Musk’s electric car company says it will invest $2bn in artificial intelligence start-up as part of pivot away from auto market.Published On 29 Jan 2026Tesla has reported its first-ever decline in annual revenue on a busy day for corporate earnings that also saw the release of results from Microsoft, Meta and Samsung Electronics.Elon Musk’s electric car company said on Wednesday that revenue fell 3 percent year-on-year to $24.9bn in the final quarter of 2025. Revenue for all of 2025 was $94.8bn, down from $97.7bn the previous year.Recommended Stories list of 4 itemslist 1 of 4Advocates call to end anti-Muslim hate 9 years after Quebec mosque attacklist 2 of 4Barcelona claim Champions League last-16 spot, but its the playoffs for PSGlist 3 of 4Mourinho’s Benfica drag Real Madrid with them to Champions League playoffslist 4 of 4Russia-Ukraine war: List of key events, day 1,435end of listNet profit fell 61 percent to $840m in the quarter, taking profit for the year to $3.8bn, down sharply from $7.1bn in 2024.The Austin, Texas-based company also revealed that it had agreed to invest $2bn in Musk’s artificial intelligence start-up xAI – the developer of Musk’s controversial Grok chatbot – as part of a push to lessen its reliance on the auto market.“Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale,” the company said in its earnings report.Tesla shares rose about 2.2 percent in after-hours trading.Also on Wednesday, tech giants Microsoft, Meta and Samsung reported strong earnings in their latest reports to shareholders.Meta, the parent company of Facebook and Instagram, reported a profit of $22.8bn on revenue of $59.9bn in the October-December period, a 6 percent rise year-on-year.Meta shares surged nearly 7 percent in extended-hours trading.Microsoft said profit rose 60 percent to $38.5bn in the final quarter, based on revenue of $81.3bn.“We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises,” Microsoft CEO Satya Nadella said in a statement.