Tesla to shift from cars to AI and robots as revenue slumps for first time
Tesla’s annual profits slump as Chinese rivals muscle into EV market
- Tesla's annual profits plummeted by 46% to $3.8bn, marking the second consecutive year of steep declines, and the company lost its position as the world's largest electric vehicle maker to a Chinese rival.
- The financial downturn is partly attributed to sales boycotts and 'brand destruction' linked to Elon Musk's political involvement and his work for President Donald Trump.
- Despite these setbacks, Tesla's stock rose by 9% over the past year, with investors focusing on Musk's ambitious future plans for robotaxis and other advanced technologies.
- For the fourth quarter, net income fell by 61% to $840m, though adjusted earnings per share surpassed analysts' forecasts, and gross profit margins improved to 20%.
- Tesla's energy storage business demonstrated strong growth, with revenues surging 25% to $3.8bn, driven by high demand from data centres.