Tesla: A Historic Decline in 2025

For the first time in its history, Tesla has reported a decline in its annual revenue, totaling $94.83 billion, which is a 3% drop compared to the previous year. This decline is particularly pronounced in its core business, automotive, which experienced a 10% reduction in revenue for the year, marking its lowest level in three years. Meanwhile, global deliveries fell by 9.1%, with around 1.6 million vehicles delivered, illustrating a slowdown in the face of increased competition, notably from the Chinese manufacturer BYD, which is now outpacing Elon Musk's company.

In terms of profitability, the electric vehicle maker has suffered a major setback with a net annual profit of $3.79 billion, nearly halved in one year, which used to match its record quarterly profits. This financial fragility is attributed to a challenging environment in the United States, marked by the elimination of the $7,500 federal tax credit at the end of September, as well as a lack of renewal in its product line beyond the facelift of the Model Y. Despite this automotive slump, Tesla manages to mitigate the damage thanks to diversifying its activities, supported by a 27% growth in its energy division and a 19% increase in its services, while now betting on artificial intelligence and the imminent deployment of its fleet of robot taxis to secure its future.