Tesla reported a 61-percent drop in fourth-quarter profits on Wednesday due to lower auto sales and increased expenses as CEO Elon Musk ramps up technology investments. Profits came in at $840 million in the quarter ending December 31, down from $2.1 billion a year earlier. Lower profits had been expected after Tesla reported a drop in fourth-quarter and full-year auto deliveries early in January. Tesla's outlook did not include a projection for its expected 2026 auto sales, saying it would depend partly on "aggregate demand for our products." But Tesla's 2025 auto sales fell nine percent, reflecting increased competition from rivals and blowback to Musk's embrace of Trump and far-right political figures.