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Tesla’s Net Profit Sinks 61 Percent in 2025 Final Quarter
(MENAFN) Elon Musk's electric vehicle empire Tesla suffered a devastating 61% collapse in net profit during 2025's final quarter, battered by surging Chinese competition and mounting political controversy.
The Austin-based automaker's quarterly net income plummeted to $840 million—down sharply from $2.1 billion recorded in the corresponding period of 2024, financial disclosures revealed.
Full-year 2025 net profit tumbled 46%, contracting to $3.8 billion as the EV manufacturer confronted unprecedented headwinds.
Fourth-quarter revenue slipped 3% year-over-year, declining from $25.7 billion to $24.9 billion. Annual revenue mirrored this trajectory, dropping 3% to $94.8 billion across the entire calendar year.
Earnings per share deteriorated sharply—falling from $0.60 in Q4 2024 to just $0.24 during the same quarter of 2025.
Despite the fourth-quarter downturn, Tesla's financial performance nonetheless surpassed Wall Street projections.
Manufacturing and Delivery Contraction
Global production totaled 434,358 vehicles during the final three months of 2025, while customer deliveries reached 418,227 units.
Year-over-year comparisons showed production declining 5.5%, while deliveries suffered a steeper 15.6% retreat during this timeframe.
Annual 2025 figures showed Tesla manufactured 1,654,667 vehicles with deliveries recorded at 1,636,129 units.
Company statements indicated forthcoming capital deployment would prioritize infrastructure supporting clean energy initiatives, transportation networks, and autonomous robotics development.
Tesla disclosed January 16 execution of an investment agreement acquiring approximately $2 billion in equity stakes within artificial intelligence firm xAI.
Sales erosion has accelerated throughout the year—particularly across European markets—attributed partially to Musk's polarizing political positioning, direct political engagement, and fierce rivalry from Chinese manufacturers including primary competitor BYD.
The Austin-based automaker's quarterly net income plummeted to $840 million—down sharply from $2.1 billion recorded in the corresponding period of 2024, financial disclosures revealed.
Full-year 2025 net profit tumbled 46%, contracting to $3.8 billion as the EV manufacturer confronted unprecedented headwinds.
Fourth-quarter revenue slipped 3% year-over-year, declining from $25.7 billion to $24.9 billion. Annual revenue mirrored this trajectory, dropping 3% to $94.8 billion across the entire calendar year.
Earnings per share deteriorated sharply—falling from $0.60 in Q4 2024 to just $0.24 during the same quarter of 2025.
Despite the fourth-quarter downturn, Tesla's financial performance nonetheless surpassed Wall Street projections.
Manufacturing and Delivery Contraction
Global production totaled 434,358 vehicles during the final three months of 2025, while customer deliveries reached 418,227 units.
Year-over-year comparisons showed production declining 5.5%, while deliveries suffered a steeper 15.6% retreat during this timeframe.
Annual 2025 figures showed Tesla manufactured 1,654,667 vehicles with deliveries recorded at 1,636,129 units.
Company statements indicated forthcoming capital deployment would prioritize infrastructure supporting clean energy initiatives, transportation networks, and autonomous robotics development.
Tesla disclosed January 16 execution of an investment agreement acquiring approximately $2 billion in equity stakes within artificial intelligence firm xAI.
Sales erosion has accelerated throughout the year—particularly across European markets—attributed partially to Musk's polarizing political positioning, direct political engagement, and fierce rivalry from Chinese manufacturers including primary competitor BYD.
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