Thursday 29 / January / 2026
Tesla's annual profit sank to its lowest level in years as the company faces an array of challenges from increased competition to reputation issues caused by CEO Elon Musk's political engagements.
The electric vehicle (EV) company on Wednesday reported that net income last year plunged 46%, to $3.8 billion (€3.17 billion).
It marked the second year in a row of steep declines.
For the fourth quarter of last year, profits came in at $840 million, down from $2.1 billion a year earlier.
Total revenue for the year also fell about 3% to roughly $94.83 billion, marking the company's first annual decline in revenue.
Tesla approves $1 trillion pay deal for CEO Elon Musk
A raft of challenges
Tesla's core EV business, which still accounts for most of the company's current revenue, has been under pressure over the past year.
It has faced increased competition from rivals such as China's BYD, which have rolled out newer models, often at lower prices.
President Donald Trump's administration has also scrapped a tax incentive for electric vehicles, denting sales in the US.
To defend sales, Tesla has relied heavily on discounts and incentives.
It also introduced cheaper models of its best sellers.
"They've got aging product that is less and less competitive as other manufacturers come out with new models, then there is the general brand destruction," Telemetry analyst Sam Abuelsamid told the Associated Press. "Musk‘s involvement in politics has turned off customers."
Is the German car industry back on top?
