Tesla has experienced a significant downturn, reporting its first annual revenue drop and a 46% plunge in profits, marking its lowest earnings level since the pandemic. Despite surpassing estimates for the fourth quarter, the company has struggled with falling sales and increasing AI-related expenses. This grim performance underlines a challenging year for Tesla, which also lost its title as the top EV seller. Investors are closely watching for insights from Elon Musk as Tesla pivots toward AI technologies, including the rollout of its Optimus robots and robotaxi project, which could be key to revitalizing growth.