In brief
On Wednesday, Tesla disclosed a sharp decline in its profits for 2024, reflecting the growing competition within the electric vehicle sector from companies in China, Europe, and the United States. Under the leadership of Elon Musk, the company reported a profit of $2.3 billion in the fourth quarter of 2024, down from $7.9 billion in the same period of 2023. The previous year's profits had been inflated due to a one-time tax benefit of $5.9 billion, and without this boost, Tesla's operating profit showed a concerning 23 percent drop.
Tesla's sales did manage a slight increase of 2 percent, reaching $25.7 billion in the final quarter, compared to $25.2 billion the year before. Annually, the company's total profit fell to $7.1 billion from $15 billion in 2023, while overall sales climbed to $97.7 billion, up from $96.8 billion in the prior year.In addition to its vehicle sales, Tesla's operations include the sale of batteries for electric utilities and storage for solar energy, which proved beneficial in offsetting some of the weaknesses in car sales. Currently, the company is heavily reliant on its Model 3 sedan and Model Y SUV, while a broader range of electric vehicle options emerges from competitors in the market.
