Tesla reported a 3% decrease in revenue in 2025 and will invest 2 billion dollars in the artificial intelligence start-up xAI

Tesla announced on Wednesday its first annual revenue decline, reporting a 3% decrease in the last quarter of 2025, with revenues of $24.9 billion. The total revenue for 2025 was $94.8 billion, down from $97.7 billion in 2024, and net profit fell by 61%, reaching $840 million in that quarter. In a strategic move, Tesla decided to invest $2 billion in the artificial intelligence start-up xAI, developed by Elon Musk, to diversify its activities beyond the automotive market. The company emphasized that this investment will enhance its ability to develop AI products and services at scale. On the same day, tech giants Microsoft, Meta, and Samsung reported strong financial results, with Microsoft recording a 60% profit increase and Meta reporting a profit of $22.8 billion. Despite the solid results, fears of a potential investment bubble in AI led to a decline in Microsoft shares by over 6% in after-hours trading. Samsung also reported a significant profit increase, more than three times compared to the previous year.