Tesla has stated that it is gradually shifting its focus away from the traditional automotive market and moving more aggressively towards AI. As part of this strategy, Tesla will invest $2 billion in Elon Musk’s AI startup, xAI. xAI has already been surrounded by multiple controversies and is also the company behind this very chatbot technology.
Tesla released its earnings report on Wednesday, which clearly reflected a significant decline in the company’s financial performance over the year.
In the last quarter of 2025, Tesla’s revenue fell 3% to $24.9 billion.
For the full year 2025, Tesla recorded total revenue of $94.8 billion, down from $97.7 billion in 2024.
When it comes to profitability, the situation looks even more challenging.
In the last quarter, Tesla’s net profit collapsed by 61%, shrinking to $840 million.
For the full year, total profit stood at $3.8 billion, compared to $7.1 billion in 2024.
Tesla also announced that its investment in xAI is to enable the company to develop and deploy its AI products and services at scale in the physical world, so that Tesla does not remain dependent solely on cars as its core business model.
Following this news, Tesla’s shares rose by approximately 2.2% in after-hours trading.
On the same day, several other big tech companies also released their results:
Meta (Parent company of Facebook & Instagram)
Meta reported revenue of $59.9 billion and profit of $22.8 billion for the October–December quarter.
This profit marks a 6% year-over-year increase.
After the results, Meta’s shares surged by nearly 7% in extended trading.
Microsoft
Microsoft reported $81.3 billion in revenue and $38.5 billion in profit in its latest quarter,
showing a massive 60% year-on-year profit growth.
Microsoft CEO Satya Nadella stated:
“Although AI adoption remains in its infancy, Microsoft has successfully established an AI enterprise that now surpasses several of its long-standing core business units in scale.”
However, a serious concern also emerged:
The company revealed that its capital spending has reached $37.5 billion, the highest level in its history.
This triggered fears among investors about a potential AI investment bubble,
which led to Microsoft’s shares falling by more than 6% in after-hours trading.
Samsung Electronics
Samsung Electronics reported:
93.8 trillion won ($65.6 billion) in revenue, and 20.1 trillion won ($13.98 billion) in profit,
reflecting more than threefold growth compared to the previous year.
