Tesla, Inc. outlook: weak deliveries, falling profits, and rich valuation vs peers. Click for this updated look at TSLA stock following the latest earnings.

Tesla has reported its first-ever annual revenue decline, just as the automaker’s chief executive officer Elon Musk ramps up billions of dollars in investment into artificial intelligence, robotaxis and humanoid robots.

Tesla's earnings preview for Jan. 28 signals a rough road ahead. Industry observers are expecting troubling numbers in the report.

Tesla has agreed to invest $2 billion in xAI, the electric automaker said on Wednesday, further deepening ties between the two Elon Musk-led companies. Tesla disclosed the investment alongside its fourth-quarter 2025 financial results,

The automaker also said it would invest $2 billion in xAI, the artificial intelligence company controlled by its C.E.O., Elon Musk, and stop making the two oldest cars in its lineup.

TSLA stock plummeted 73.6% from a peak of $409.97 on 4 November 2021 to $108.10 on 3 January 2023, compared to a peak-to-trough decline of 25.4% for the S&P 500. Thereafter, the stock surged to a high of $489.88 on 16 December 2025, and presently trades at $447.20

Tesla’s brand value fell sharply in 2025 as weak product momentum and political controversy weighed on consumer trust, even as rivals gained ground.