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Tesla's revenue in the fourth quarter decreased by 3%, and the company also lost its position as the world's largest electric vehicle manufacturer, being replaced by BYD. Tesla announced revenue of $24.9 billion for the quarter. Full-year revenue for 2025 was $94.8 billion, a 3% decrease compared to the previous year. Net profit was $840 million, a 61% decrease year-on-year. Non-GAAP earnings per share were $0.50, higher than analysts' expectations of $0.45. Free cash flow for the quarter was $1.4 billion, a 30% decrease year-on-year, attributed to Tesla's significant investments in robotics and artificial intelligence research. However, this result was still better than the analysts' consensus of a negative value. Tesla's stock price rose more than 3% in after-hours trading. Additionally, Tesla announced a $2 billion investment in xAI, showing the company's increasing focus on artificial intelligence.
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