Tesla tops estimates for quarter, but wraps up first annual revenue drop on record

Core Insights - Tesla reported better-than-expected fourth-quarter results, but annual revenue dropped 3%, marking the first recorded annual decline for the company [1][2] - The stock rose 3% in extended trading following the earnings announcement [1] - Auto sales have been sluggish due to increased competition, particularly from BYD in China [1] Financial Performance - Fourth-quarter revenue decreased 3% to $24.90 billion from $25.7 billion a year earlier, with the auto segment falling 11% [2][5] - Full-year revenue fell to $94.8 billion from $97.7 billion in 2024 [2] - Vehicle deliveries plunged 16% in the fourth quarter and 8.6% for the full year [2] Strategic Focus - Despite struggles in the core business, CEO Elon Musk is emphasizing the company's Robotaxi business and Optimus humanoid robots, which have not yet been released [3] - Tesla launched a Robotaxi-branded ride-hailing app in 2025 and is conducting a pilot service in Austin, Texas, with plans to expand to seven additional U.S. markets [4]