Tesla's net income plunges in 2025

U.S. electric vehicle maker Tesla on Wednesday reported lower revenue and net income for last year, according to its latest earnings report, reported Xinhua.

Tesla's total revenue in 2025 reached 94.83 billion U.S. dollars, down 3 percent year on year, while net income measured via generally accepted accounting principles fell 46 percent to 3.79 billion dollars.

The company delivered about 1.64 million vehicles globally in 2025, marking the second consecutive annual decline. Its annual electric vehicle sales volume was surpassed for the first time by Chinese automaker BYD.

In the fourth quarter, Tesla delivered 418,227 vehicles, down 16 percent year on year. Revenue in the same period dropped 3 percent year on year to 24.9 billion dollars, while net income plunged 61 percent year on year to 840 million dollars.

In the report, Tesla said it continued in 2025 to transition from a hardware-centric company to a "physical AI" company. In 2026, the company plans to further invest in "the infrastructure needed to support clean energy and transport and autonomous robots."

Tesla also said it plans to unveil the Gen 3 version of its humanoid robot Optimus in the first quarter of this year. Preparations for the first production line are underway, with production expected to begin before the end of 2026 and the eventual planned capacity to reach 1 million robots per year.