On Wednesday, Tesla reported a sharp decrease in profit for 2024, as the competitors in China, Europe and the United States overcame the market for electric cars.
The company, which was led by Elon Musk, said it made a profit of $ 2.3 billion in the past three months of 2024. This was a decrease compared to $ 7.9 billion in the previous year, but a profit of 2023 included a one -time tax subsidy worth $ 5.9 billion. Tesla operating profit, which excludes this special profit, has decreased by 23 percent in the last three months of the year.
Sales increased by 2 percent to $ 25.7 billion in the fourth quarter, from $ 25.2 billion in the same period in 2023.
The company’s revenues and its profit at $ 692 million helped sales of organizational credits for other auto manufacturers that need to meet emissions standards. A year ago, the company produced $ 433 million in these sales. The Trump administration and Republican in Congress said they intend to cancel the regulations that allow Sala to sell such credits.
Tesla said that for the full year, profit amounted to $ 7.1 billion. Sales rose to 97.7 billion dollars, from 96.8 billion dollars in 2023.
Tesla also sells the batteries used by electrical facilities, companies and homes to store energy from solar panels and other sources. Increased sales of these products helped compensate for faded car sales.
The company still relies on models, Model 3 Sedan and Model Y Sport, for most car sales, while competitors in Asia, Europe and the United States offer a broader and growing group of electric cars.
BYD, based in China, sells more than ten electrical hybrid models and lamps made up from sub -areas to mini van, and have emerged as the largest Tesla competitor outside the United States. HSBC analysts said in a report that Chinese car manufacturers are expected to offer more than 60 models in the second quarter of this year.
In the profit report, Tesla said that a new more advanced version of the Y model will be sold in March, at a start price of about $ 60,000. The current model Y starts from about $ 45,000. He also said that the “more affordable” models will enter production in the first half of the year, but they have not provided any details.
Tesla said that a self -driving vehicle can operate as a driver taxi, called Cybercab, will enter production in 2026. Musk told investors and analysts at a group conference on Wednesday. Tesla is located in the city and has a large factory there.
He said: “This is not some legendary situation away.” He added that “2025 will be a pivotal year for Tasla.”
Increased competition and relative lack of Tesla in new models that led to a decrease in the company’s market share in China, Europe and the United States last year. Tesla said earlier this month she sold 1.8 million vehicles Throughout the world in 2024, a little less than 2023. This is a major change for the company that increased car sales by 38 percent in 2023 and 40 percent in 2022.
In the United States, the Tesla share of the electric car market decreased to 44 percent in the last quarter of the year, from 51 percent in the previous year, according to Cox Automotive. Tesla also lost in the luxury market for automobile companies such as BMW and Rivian.
Slippers of the latest vehicle in Tesla, Cyblertruck Pickup, which starts from about $ 80,000, seem to be learned as well. Tesla sold 13,000 electronic companies in the fourth quarter, a decrease from 16,700 in the third quarter, according to COX estimates.
Tesla reduced prices and offered low financing to increase sales, but the measures came at the expense of profit. However, Tesla is one of the few car makers who earn money on electric cars. Ford, General Motors and others who are not yet sold enough of the electric cars to recover the investments they have made to restart the assembly lines and the manufacture of batteries.
Tesla shares have risen since November despite the dull financial performance of the company. Investors instead focus on promises by Mr. Musk to produce self -driving “Cybercabs” that he says can generate trillion dollars from revenue. The company said on Wednesday that taxi work “will start later this year” in parts of the United States.
“The stock has become unrelated from the basics,” Barclays analysts said in this month’s report. Instead, they said that investors are betting on the “power of Elon star” and “The role of Tesla as a disruption – regardless of the distant opportunity.”
Some investors seem to hope that Mr. Musk’s close association with President Trump will help Tesla-for example, by helping to get rid of organizational obstacles to self-driving cars.
But Mr. Trump and the Republicans in Congress promised to get rid of tax credits and other incentives for electric cars, including Tellas. Mr. Musk said that eliminating incentives will harm competitors more than Tesla.
