Tesla just posted something it has never posted before: a revenue decline. The company’s 2025 top line fell approximately 3% year-over-year to around $94.83 billion, driven by softening vehicle deliveries.
The decline coincides with CEO Elon Musk steering Tesla’s resources, attention, and capital toward everything that isn’t a traditional car. Robotaxis, humanoid robots, an AI startup, and a $25 billion capital expenditure plan for 2026.
The pivot in practice
On January 28, 2026, Musk announced that Tesla would discontinue production of the Model S and Model X by the end of Q2 2026. Specifically, the Optimus humanoid robot program and robotaxi manufacturing are absorbing the freed capacity. Tesla also invested roughly $2 billion into Musk’s xAI startup.
The $25 billion in planned capital expenditure for 2026 is roughly a quarter of Tesla’s entire 2025 revenue, plowed back into AI-driven initiatives.
