US electric vehicle (EV) giant Tesla's net profit sank 61% in the last quarter of 2025, as Elon Musk's firm faced intensified competition from Chinese rivals and a political backlash.
The electric car manufacturer's net profit dropped to $840 million from $2.1 billion in the last quarter of 2024, according to the firm's financial results.
Tesla's net profit for the whole of 2025 decreased by 46%, falling to $3.8 billion.
The company's revenue declined 3% year-on-year in the last quarter of last year, falling to $24.9 billion from $25.7 billion in the fourth quarter of 2024.
The company's revenue also decreased by 3% year-on-year for the whole of 2025, falling to $94.8 billion.
Tesla's earnings per share, which were $0.60 in the fourth quarter of 2024, also fell to $0.24 in the same period of 2025.
Despite a decline in the last quarter of last year, Tesla's revenue and profit exceeded market expectations.
- DELIVERIES DECLINE
Tesla produced 434,358 cars globally in the fourth quarter of 2025, while delivering 418,227 vehicles.
The company's vehicle production dropped 5.5% year-on-year during this period, while the number of vehicles delivered fell by 15.6%.
Tesla's total vehicle production for 2025 reached 1,654,667, with deliveries recorded at 1,636,129.
The company stated that this year, more investments will be made in infrastructure supporting clean energy, transportation, and autonomous robots.
The statement added that Tesla signed an investment agreement on Jan. 16 to acquire shares in the artificial intelligence company xAI for approximately $2 billion.
Tesla's sales have been rapidly declining this year, especially in Europe, partly due to Musk's controversial political stances, his intervention in politics, and rapid competition from Chinese brands, such as the main rival BYD.
