"Tesla beat Wall Street's expectations, but reported its first-ever decline in annual revenue and said profits fell by 46% last year, while revenue from car sales fell by 11% year-over-year in the last quarter. Executives largely shrugged off the headwinds, with Musk and other top employees reiterating in the analyst Q&A their belief that autonomous vehicles will shortly render traditional forms of transport obsolete."
""The vast majority of miles traveled will be autonomous in the future," said Musk, in response to an investor question asking about Tesla's plans to launch new models. "I'm just guessing, but probably less than 5% of miles driven will be where somebody's actually driving the car themselves in the future, maybe as low as 1%," he added. Investors reacted positively, with Tesla shares rising around 3% after hours following earnings."
Tesla will scrap the Model S and X and convert their production lines to build the Optimus humanoid robot as the company shifts toward AI and robotics. Tesla agreed to invest $2 billion in xAI and will evaluate potential AI collaborations with Musk's startup. The EV business saw sales decline for the second consecutive year in 2025, driving the company's first-ever annual revenue decline and a 46% drop in profits; revenue from car sales fell 11% year-over-year in the most recent quarter. Executives emphasized a coming era of autonomous miles, investors pushed shares up about 3% after the earnings report, and vehicle sales increasingly appear secondary to a strategy focused on robotics, AI, and software services.
Read at Business Insider
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