Tesla’s Profit Fell Sharply Last Year
Business|Tesla’s Profit Fell Sharply Last Year
https://www.nytimes.com/2025/01/29/business/tesla-earnings-elon-musk.html
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
The electric car company run by Elon Musk is facing increasing competition, but investors have focused mostly on the prospects for Tesla’s self-driving technology.
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.
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’s profit included a one-time tax benefit of $5.9 billion. Tesla’s operating profit, which excludes that special gain, fell 23 percent in the final three months of the year.
Sales rose 2 percent to $25.7 billion in the fourth quarter, from $25.2 billion in the same period in 2023.
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.
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.
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.