Tesla's profits take a big hit in 2025
Tesla's profits fell to $3.8 billion in 2025, a 46% decline from the prior year. The company also saw non-GAAP net income decline 16%.
The dip comes after Congress ended federal EV subsidies and Elon Musk assumed a role in the Trump administration, which reportedly slowed sales.
But Q4 results surprised everyone
Even with the rough year, Tesla's fourth quarter was stronger than expected—revenue hit $24.9 billion and earnings per share beat forecasts.
Plus, their combined solar and energy storage businesses grew 25% compared to 2024, showing there's still momentum in some areas.
Eyes on AI and what's next
Tesla is betting big on AI, recently investing $2 billion in xAI (in 2025) and calling 2025 a "transition" toward more physical AI tech.
Looking ahead to 2026, they're planning early production of new vehicles like the Semi and Cybercab, plus unveiling their Optimus robot—so there's plenty to watch for if you're into tech or EVs.