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Tesla Profit Falls to Pandemic-Era Low After 46% Annual Drop

Musk urges investors to focus on robotaxis ahead of a conference call detailing his plans.

Overview

  • Tesla reported 2025 net income of about $3.8 billion, marking a second straight yearly decline and its lowest profit since the pandemic.
  • Fourth-quarter net income fell 61% to $840 million as vehicle deliveries weakened.
  • Full-year deliveries slipped to roughly 1.63 million vehicles and revenue decreased about 3% to $94.8 billion.
  • The company attributed the downturn to higher average costs from reduced fixed-cost absorption on some models, rising tariffs and increased operating expenses.
  • Shares are up about 9% over the past year as Musk promotes a longer-term shift to robotaxis, with more detail expected on a call later Wednesday.