Tesla hits a grim milestone: its second straight year of decline
Tesla just reported its second consecutive year of declining revenue and profits, further complicating Elon Musk's $1 trillion effort to transform his company into a leader in AI and robotics. Meanwhile, the global EV market continues to grow, seemingly in spite of the pioneering company's setbacks.
Tesla said it earned $840 million in net income on $24.9 billion in revenue in the quarter that ended in December 2025. That's a 3 percent decrease in revenue and a staggering 61 percent decrease in profits over the fourth quarter of 2024, when the company earned $2.3 billion in net income on $25.7 billion in revenue.
Tesla beat expectations f ...