Tesla’s Profit Fell Sharply Last Year

Tesla reported on Wednesday about a sharp drop in profit for 2024, because rivals in China, Europe and the United States have been ripped off their lead on the electric cars market.

The company, led by Elon Musk, said it had made a profit of $ 2.3 billion during the last three months of 2024. It was a drop compared to $ 7.9 billion a year earlier, but a profit of 2023 included a one -time tax benefit of $ 5.9 of $ 5.9 billion. Tesla’s operational profit, which excludes this special gain, has fallen 23 percent in the last three months of the year.

The sale increased by 2 percent to $ 25.7 billion in the fourth quarter, with $ 25.2 billion in the same period in 2023.

For the whole year, profit was $ 7.1 billion, Tesla said, which is a drop with $ 15 billion a year earlier. The sale increased to $ 97.7 billion, with $ 96.8 billion in 2023.

Tesla also sells batteries that use electric services, companies and energy storage homes from solar panels and other sources. Increased sale of these products has helped make up for a light car sale.

The company relies on two models, the model 3 sedan and the Y Sports Municipal Vehicle, most of the car sales, while the rivals in Asia, Europe and the United States offer a wider and growing selection of electric vehicles.

Byd, based in China, sells more than a dozen electric and plug-in hybrid models, from sub-compact to minovan, and appeared as Tesla’s largest challenger outside the United States. Chinese car manufacturers are expected to present more than 60 models in the second quarter of this year, analysts said at the HSBC report.

Increased competition and Tesla’s relative disadvantage of new models has led to the fall of the market share of the company in China, Europe and the United States last year. Tesla said earlier this month to sell 1.8 million vehicles worldwide in 2024, slightly less than in 2023. This is a big change for a company that has increased the car sale 38 percent in 2023 and 40 percent in 2022.

In the United States, Tesla’s share of electric vehicles fell to 44 percent in the last quarter of the year, with 51 percent a year earlier, Cox Automotive reports. Tesla also lost the soil in the luxury market. In the United States, BMW sold almost just as much luxury I5 and I7 luxury sedans as Tesla sold the 2024 car model; And Rivian sold about 7000 more of his R1S SUV as Tesla’s model X, Cox states.

The sale of Tesla’s latest vehicle, Cybertruck Pickup, which starts around $ 80,000, also seems to be marked. Tesla sold 13,000 Cybertrucks in the fourth quarter, which in the third quarter is a drop of 16,700, according to Cox estimates.

Tesla reduced prices and offered low interest financing to increase sales, but the measures came to the detriment of profits. Still, Tesla is one of the few car manufacturers earning on electric vehicles. Ford, General Motors and others do not yet sell enough electric cars to make up for the investments they have made to remodel mounting lines and the production of batteries.

Tesla shares have increased since November, despite the false financial success of the company. Instead, investors focus on the promises of Mr. Musk to produce self-conquest “Cybercs”, which he says could generate revenue revenues. The company said on Wednesday that it would “start starting later this year” in the United States.

“The shares have become unobstructed from the basics,” said analysts at Barclays in a report this month. Instead, they said, investors are betting on the “Elon Star” and “Tesla’s role as a disorder – no matter how far the opportunity is.”

Some investors also hope that the close connection between Mr. Musk with President Trump will help Tesla: for example, helping to remove regulatory obstacles in the vehicle’s independent driving.

But Mr. Trump and Republicans in Congress promised to deprive tax reliefs and other incentives for electric vehicles, including Teslas. Mr. Musk said that the removal of the incentives would harm the rivals more than Tesla.

The company, which has its corporate headquarters in Austin, Texas, said it would present a vehicle that would be sold for much less than the Listen Model 3 this year, starting at $ 42,500 before the Government incentives. A more affordable car can attract more customers and help revive sales. But Tesla did not give details or displayed the prototype.