Musk’s electrical automobile firm says it’s going to make investments $2bn in synthetic intelligence start-up as a part of pivot away from auto market.
Printed On 29 Jan 2026
Tesla has reported its first-ever decline in annual income on a busy day for company earnings that additionally noticed the discharge of outcomes from Microsoft, Meta and Samsung Electronics.
Elon Musk’s electrical automobile firm stated on Wednesday that income fell 3 p.c year-on-year to $24.9bn within the last quarter of 2025. Income for all of 2025 was $94.8bn, down from $97.7bn the earlier 12 months.
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Internet revenue fell 61 p.c to $840m within the quarter, taking revenue for the 12 months to $3.8bn, down sharply from $7.1bn in 2024.
The Austin, Texas-based firm additionally revealed that it had agreed to speculate $2bn in Musk’s synthetic intelligence start-up xAI – the developer of Musk’s controversial Grok chatbot – as a part of a push to reduce its reliance on the auto market.
“Collectively, the funding and the associated framework settlement are supposed to boost Tesla’s potential to develop and deploy AI services and products into the bodily world at scale,” the corporate stated in its earnings report.
Tesla shares rose about 2.2 p.c in after-hours buying and selling.
Additionally on Wednesday, tech giants Microsoft, Meta and Samsung reported sturdy earnings of their newest studies to shareholders.
Meta, the mother or father firm of Fb and Instagram, reported a revenue of $22.8bn on income of $59.9bn within the October-December interval, a 6 p.c rise year-on-year.
Meta shares surged almost 7 p.c in extended-hours buying and selling.
Microsoft stated revenue rose 60 p.c to $38.5bn within the last quarter, based mostly on income of $81.3bn.
“We’re solely at first phases of AI diffusion and already Microsoft has constructed an AI enterprise that’s bigger than a few of our greatest franchises,” Microsoft CEO Satya Nadella stated in an announcement.
“We’re pushing the frontier throughout our complete AI stack to drive new worth for our clients and companions.”
Regardless of its sturdy earnings, Microsoft’s announcement that capital spending hit a document $37.5bn within the second quarter stoked fears of an AI funding bubble, sending inventory costs sharply decrease.
Microsoft’s shares fell greater than 6 p.c in after-hours buying and selling on Wednesday.
Samsung Electronics, the largest producer of reminiscence chips globally, reported a revenue of 20.1 trillion gained ($13.98bn) on income of 93.8 trillion gained ($65.6bn), a greater than three-fold rise from the earlier 12 months.
