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Tesla beats Q4 estimates despite first-ever annual revenue decline

Wed 28 January 2026 22:48 | A A A

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(Sharecast News) - Electric carmaker Tesla posted slightly betterthanexpected fourthquarter results on Wednesday, even as fullyear revenue slipped 3% - the first annual decline on record.

Tesla said adjusted earnings came in at $0.50 per share in Q4, ahead of the $0.45 expected by analysts, while revenues slipped 3% to $24.9bn narrowly top forecasts of $24.79bn.

Automotive sales were down 11% to $17.7bn as Tesla continued to face soft auto demand amid intensifying global competition, particularly from BYD in China, while energy generation and storage revenue rose 25% to $3.84bn, and services and other revenues increased 18% to $3.37bn.

Net income slumped 61% in the quarter to $840m as operating expenses jumped 39%, while capital spending fell 14% to $2.39bn.

Fullyear revenue dropped to $94.8bn from $97.7bn, which Tesla attributed to lower vehicle deliveries and reduced regulatory credit revenue.

Earlier in January, Tesla reported a 16% slide in Q4 vehicle deliveries and an 8.6% drop for the year as a whole.

As of 2245 GMT, Tesla shares were up 3.67% in extended trading at $446.27 each.

Reporting by Iain Gilbert at Sharecast.com

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