Tesla Profit Slumps, but Investors May Not Care

Tesla reported a steep decline in annual profit Wednesday as it cut car prices to try to fend off growing competition from established automakers like Volkswagen and newer rivals from China.

The Chinese carmaker BYD has surpassed Tesla as the largest manufacturer of electric vehicles globally. In Europe, Volkswagen now sells more electric vehicles than Tesla.

Falling car sales have taken a toll on Tesla’s net profit, which was $3.8 billion for the year, down from $7.1 billion in 2024. Profit in the fourth quarter fell to $840 million from $2.1 billion a year earlier.

Revenue slipped 3 percent to $94.8 billion, as growing sales of large batteries used for energy storage helped compensate for a steep decline in revenue from the car business.

Article source: https://www.nytimes.com/2026/01/28/business/tesla-earnings-electric-vehicles.html