Tesla reported on Wednesday a sharp decline in profit for 2024 as opponents in China, Europe and the United States were removed in its lead in the electric car market.
The company, led by Elon Musk, said it won $ 2.3 billion in the last three months of 2024. This was a fall compared to $ 7.9 billion last year, but the profit of 2023 included one One -time tax benefit of $ 5.9 $ 5.9 billion. Tesla’s operating profit, which excludes that special profit has decreased by 23 % in the last three months of the year.
Sales rose by $ 2 % to $ 25.7 billion in a quarter of $ 25.2 billion in 2023.
The company’s revenue and profits helped $ 692 million in sales of regulatory credit to other automakers they need to meet broadcasting standards. A year earlier, the company made $ 433 million from such sales. Trump’s administration and Republicans in Congress have said they intend to abolish regulations that allow Tesla to sell such credits.
For the whole year, the profit was $ 7.1 billion, Tesla said from $ 15 billion last year. Sales rose to $ 97.7 billion, from $ 96.8 billion in 2023.
Tesla also sells batteries used by electrical auxiliaries, businesses and homes to store energy from solar panels and other sources. Increased sales of these products have helped to compensate for loose car sales.
The company remains dependent on two models, the 3 sedan model and the Y Sport Vehicle model for most of its car sales, while its opponents in Asia, Europe and the United States offer a wider and growing selection of electric vehicles.
BYD, based in China, sells over twelve electric and plug-in hybrid models, from subsystems to minivans, and has emerged as Tesla’s biggest challenge outside the United States. Chinese automakers are expected to introduce more than 60 models in the second quarter of this year alone, HSBC analysts said in a report.
In its profits report, Tesla said that a new, more advanced version of the Y model will be released in March, with a starting price of about $ 60,000. The current model Y starts at about $ 45,000. He also said that the “most affordable” models would be released in the first half of the year, but they did not provide details.
Tesla said that a vehicle self-driving that can serve as a driver without a driver, called Cybercab, will be transferred to production in 2026.
The increased competition and the relative lack of new Tesla models have led to a reduction in the company’s market share in China, Europe and the United States last year. Tesla said earlier this month that it sold 1.8 million vehicles worldwide in 2024, slightly smaller than 2023. This is a big change for a company that increased car sales by 38 % in 2023 and 40 % in 2022.
In the United States, Tesla’s share in the electric vehicle market decreased to 44 % in the last quarter of the year, from 51 % last year, according to Cox Automotive. Tesla has also lost ground in the luxury market. In the United States, BMW sold almost so many sedans i5 and i7, as Tesla sold Model S cars in 2024. And Rivian sold about 7,000 more than his R1s SUVs as Tesla’s X model, according to Cox.
The sales of Tesla’s newer vehicle, Pickup Cybertruck, which starts at about $ 80,000, also seem to mark. Tesla sold 13,000 Cybertrucks in the fourth quarter, from 16,700 in the third quarter, according to COX estimates.
Tesla has reduced prices and offers low interest rate funding to increase sales, but measures have come to the expense of profit. Still, Tesla is one of the few highways to make money in electric vehicles. Ford, General Motors and others are still not selling enough electric cars to restore the investments they have made to refresh the assembly lines and build batteries.
Tesla’s shares have increased since November despite the lack of financial performance of the company. Investors focus on Mr Musk’s promises to produce “cybercabs” self-guiding that says it could generate trillions of dollars in revenue. The company said on Wednesday that its taxi operation will “start later this year” in parts of the United States.
“Stock has surpassed the basics,” Barclays said in a report this month. On the contrary, they said, investors bet on “Elon’s Star Power” and “Tesla’s role as a disorder – no matter how far the opportunity is.”
Some investors obviously hope that Mr Musk’s close relationship with President Trump will help Tesla: for example, helping to clarify regulatory barriers to self-guiding vehicles.
But Mr Trump and Republicans in Congress have promised to remove tax credits and other electric vehicles, including Teslas. Mr Musk said that the elimination of incentives would harm his opponents more than Tesla.
The company, which is based in Austin, Texas, said it would import a vehicle this year which would sell significantly less than the Sedan Model 3, which starts at $ 42,500 before government incentives. A more affordable car can attract more buyers and help rejuvenate sales. But Tesla has not provided details or showed an original.
