Tesla reported its first full-year revenue decline in company history, with total revenues down 3% year-over-year to $24.9 billion in Q4. Automotive revenues fell by 11% as vehicle deliveries dropped for the second consecutive year, totaling 418,227 units versus 498,130 in the prior year period. Adjusted earnings per share of $0.50 exceeded consensus estimates of $0.45, but shrinking top-line growth underscored mounting pressure on Tesla’s core electric vehicle business.

The firm’s brand value plummeted 36% to $27.6 billion, marking the third straight annual decline and causing Tesla’s global brand ranking to tumble to 75th from 36th. In the U.S., its recommendation score slid from 8.2 to 4.0 out of 10. Toyota, Mercedes-Benz, Volkswagen, Porsche and BMW now all outrank Tesla, as analysts point to growing concerns over a lack of new flagship models and CEO Elon Musk’s public geopolitical involvement.

Tesla announced it will discontinue its premium Model S and Model X lines, reallocating those production capacities to its Optimus humanoid robot initiative. Capital expenditures for 2026 were raised above $20 billion, reflecting aggressive investment in advanced robotics, automation and artificial intelligence infrastructure. Management framed the shift as essential to diversify beyond shrinking automotive margins and capture long-term optionality in robotaxis and physical AI applications.

Tesla’s energy storage segment delivered a record 46.7 gigawatt-hours deployed in 2025, up 48% year-over-year, with segment revenues rising 25% to $12.8 billion. Megapack installations contributed $1.1 billion in gross profit last quarter, with segment gross margins near 30%, nearly double automotive margins. Deferred revenue from large-scale storage projects stands at $4.96 billion, more than doubling the amount recognized in 2025 and providing strong visibility into near-term earnings support.