Tesla has just reported its second consecutive year of declining revenue and profits, a grim milestone that comes as the electric vehicle (EV) giant faces an increasingly competitive market. The company's earnings report for the fourth quarter of 2025 revealed a 3 percent decrease in revenue to $24.9 billion, compared to the same period last year, when Tesla earned $25.7 billion.
However, what's perhaps more concerning is the 61 percent decline in profits during the same quarter, with net income plummeting to $840 million from $2.3 billion a year ago. While some analysts had anticipated this drop, given the challenging market conditions and rising competition, the sheer scale of Tesla's financial woes still raises eyebrows.
One reason for Tesla's struggles is its aging lineup, which has failed to keep pace with the rapid evolution of the EV industry. Additionally, Elon Musk's polarizing personal brand, particularly his divisive social media posts and erratic leadership style, have alienated some of the company's most loyal customers. The latest earnings report cited a loss of over 1 million vehicles in sales, likely due in part to Musk's contentious behavior.
Musk has downplayed these setbacks, predicting that Tesla will rebound as its AI plans come to fruition, including robotaxis and humanoid robots. However, so far, only a handful of vehicles are available in limited numbers, which further erodes confidence in the company's ability to meet its ambitious targets.
The situation is all the more complicated by Musk's recent approval for a massive new pay package that could theoretically make him the world's first trillionaire. This raises questions about the alignment of incentives and the priorities of Tesla's leadership, as well as the potential risks to investors who are locked into this compensation structure.
As global EV sales continue to grow – albeit at a slower pace than expected due to policy shifts and subsidies – it remains to be seen how Tesla will adapt and regain its footing. For now, the company's financial struggles cast a shadow over Elon Musk's vision for AI-driven mobility, and investors would do well to keep a close eye on these developments in the coming months.
However, what's perhaps more concerning is the 61 percent decline in profits during the same quarter, with net income plummeting to $840 million from $2.3 billion a year ago. While some analysts had anticipated this drop, given the challenging market conditions and rising competition, the sheer scale of Tesla's financial woes still raises eyebrows.
One reason for Tesla's struggles is its aging lineup, which has failed to keep pace with the rapid evolution of the EV industry. Additionally, Elon Musk's polarizing personal brand, particularly his divisive social media posts and erratic leadership style, have alienated some of the company's most loyal customers. The latest earnings report cited a loss of over 1 million vehicles in sales, likely due in part to Musk's contentious behavior.
Musk has downplayed these setbacks, predicting that Tesla will rebound as its AI plans come to fruition, including robotaxis and humanoid robots. However, so far, only a handful of vehicles are available in limited numbers, which further erodes confidence in the company's ability to meet its ambitious targets.
The situation is all the more complicated by Musk's recent approval for a massive new pay package that could theoretically make him the world's first trillionaire. This raises questions about the alignment of incentives and the priorities of Tesla's leadership, as well as the potential risks to investors who are locked into this compensation structure.
As global EV sales continue to grow – albeit at a slower pace than expected due to policy shifts and subsidies – it remains to be seen how Tesla will adapt and regain its footing. For now, the company's financial struggles cast a shadow over Elon Musk's vision for AI-driven mobility, and investors would do well to keep a close eye on these developments in the coming months.
They're having a major financial crisis and their profits are literally dropping like a rock! I get it, the market is super competitive now and Elon Musk can be kinda... much sometimes 
. But 61% decline in profits is crazy talk! And it's not just that, their sales are also down by over 1 million vehicles 
. What's going on with their lineup? Are they not innovating fast enough?
! Is this the reason for all these financial struggles? How can one person be so influential on a company's decisions and priorities? 
I'm just curious to know what's going on and how Tesla will recover from this. Will they focus more on AI plans like robotaxis and humanoid robots, or is there something else at play? 
this is crazy. I mean, who would've thought Tesla would be struggling like this? They're basically the pioneers of electric cars and now they're facing so much competition. I think Elon Musk needs to step back and rethink his strategy, maybe take some advice from others in the industry. And that pay package? It's just wild. 
. The EV market is getting more crowded and competitive by the day 
. And let's be real, Elon Musk's Twitter antics are starting to rub some people the wrong way 
. It's like he's trying to single-handedly drive innovation instead of letting his team do their thing 
.
. The AI plans are legit and could be a game-changer for transportation 
. And let's not forget, Musk is still one of the most influential people in the industry 
.
. Maybe it's time for Elon to dial it back a notch and focus on building a solid team instead of being the center of attention 
. Until then, I'll be keeping an eye on this one 
.
Tesla's decline is like, totally not surprising anymore 
. I mean, I've been saying it for ages - the EV market has gotten too saturated 
. And Elon's tweets are just getting more and more cringeworthy 
. Like, dude, calm down! 
. Don't get me wrong, I still think Elon's vision is cool, but can he actually deliver it? 
. And 61% decline in profits? Yikes! Elon Musk needs to get his house in order ASAP 
. We've seen too many startups fizzle out because they got too caught up in their own hype. Tesla's gotta figure out what it's doing and do it fast or risk losing its footing altogether 
.
. And what's with Elon Musk's personal brand? He's like a rollercoaster ride of emotions 
- one minute he's a genius, next minute he's driving the company into the ground 
I gotta say, Tesla is having some major cash flow issues and it's kinda worrying 
. Like, what's up with the pay package he just got? Is it just a huge ego trip or is there actually some substance to this trillionaire thing?