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Tesla on Wednesday reported a sharp drop in profit for 2024 as rivals in China, Europe and the United States chipped away at its lead in the market for electric cars.<\/p>\n
The company, which is led by Elon Musk, said it made a profit of $2.3 billion during the last three months of 2024. That was a decline compared with $7.9 billion a year earlier, but 2023\u2019s profit included a one-time tax benefit of $5.9 billion. Tesla\u2019s operating profit, which excludes that special gain, fell 23 percent in the final three months of the year.<\/p>\n
Sales rose 2 percent to $25.7 billion in the fourth quarter, from $25.2 billion in the same period in 2023.<\/p>\n
The company\u2019s revenue and profit were helped by $692 million in sales of regulatory credits to other automakers that need them to meet emissions standards. A year earlier, the company generated $433 million from such sales. The Trump administration and Republicans in Congress have said they intend to repeal the regulations that allow Tesla to sell such credits.<\/p>\n<\/div>\n<\/div>\n
For the full year, profit was $7.1 billion, Tesla said, down from $15 billion a year earlier. Sales rose to $97.7 billion, from $96.8 billion in 2023.<\/p>\n
Tesla also sells batteries used by electric utilities, businesses and homes to store energy from solar panels and other sources. Increased sales of those products helped compensate for lackluster car sales.<\/p>\n
The company remains reliant on two models, the Model 3 sedan and Model Y sport utility vehicle, for most of its car sales, while rivals in Asia, Europe and the United States offer a wider and growing selection of electric vehicles.<\/p>\n
BYD, based in China, sells more than a dozen electric and plug-in hybrid models, from subcompacts to minivans, and has emerged as Tesla\u2019s biggest challenger outside the United States. Chinese automakers are expected to introduce more than 60 models in the second quarter of this year alone, analysts at HSBC said in a report.<\/p>\n
In its earnings report, Tesla said a new, more advanced version of the Model Y would go on sale in March, with a starting price of around $60,000. The current Model Y starts at around $45,000. It also said \u201cmore affordable\u201d models would go into production in the first half of the year, but provided no details.<\/p>\n<\/div>\n<\/div>\n
Tesla said a self-driving vehicle that can serve as a driverless taxi, called the Cybercab, would go into production in 2026. Some of the company\u2019s existing models will begin operating autonomously, without human intervention, in Austin, Texas, in June, Mr. Musk told investors and analysts on a conference call on Wednesday. Tesla is based in the city and has a large factory there.<\/p>\n
\u201cThis is not some far-off, mythical situation,\u201d he said. He added that \u201c2025 is going to be a pivotal year for Tesla.\u201d<\/p>\n