Tesla's profits take a hit as it doubles down on AI and energy
Tesla's profits in 2025 dropped 46% from 2024, even though the company delivered over 1.6 million cars.
Automotive revenue fell by 11% as competition and price cuts squeezed the EV market.
Still, Tesla managed to beat Wall Street's Q4 revenue expectations, showing it can hold its ground in a tough market.
Energy storage shines while car sales slow
While car sales struggled, Tesla's energy storage business had a record year—deploying 46.7 GWh in 2025; its energy-storage revenue surged 25% in the most recent quarter.
This boost helped balance out weaker automotive numbers and showed that Tesla isn't just about cars anymore.
Big bets on AI, robots, and what comes next
Looking ahead, Tesla is guiding about $20 billion in capital expenditures, some of which will support AI projects, self-driving tech, and its Optimus robot lineup.
The company also put $2 billion into Elon Musk's xAI startup and offers a Full Self-Driving subscription.
It's clear Tesla wants to be known for more than just electric vehicles—it's betting big on tech shaping the future.