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

AI Summary
In 2025, Tesla, led by Elon Musk, reported its first-ever annual revenue decline, with a 3% drop in the fourth quarter and a decrease from $97.7bn to $94.8bn for the year. Net profit also fell significantly, down 61% in the quarter and sharply for the year. As part of a strategic shift away from solely focusing on the auto market, Tesla announced a $2 billion investment in Musk's AI startup, xAI, to enhance its AI development and deployment capabilities. The news emerged amidst a busy day for corporate earnings, with Microsoft, Meta, and Samsung also releasing strong financial results. Meta reported a profit of $22.8bn, and Microsoft saw a 60% profit increase.
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