Elon Musk's Tesla reports first-ever annual decline in revenue

Tesla has reported its first-ever decline in annual revenue on a busy day for corporate earnings that also saw the release of results from Microsoft, Meta and Samsung Electronics. Elon Musk's electric car company said on Wednesday that revenue fell 3 percent year-on-year to $24.9bn in the final quarter of 2025. Revenue for all of 2025 was $94.8bn, down from $97.7bn the previous year. The Austin, Texas-based company also revealed that it had agreed to invest $2bn in Musk's artificial intelligence start-up xAI - the developer of Musk's controversial Grok chatbot - as part of a push to lessen its reliance on the auto market. "Together, the investment and the related framework agreement are intended to enhance Tesla's ability to develop and deploy AI products and services into the physical world at scale," the company said in its earnings report.