In 2024, the electric vehicle giant faced a challenging landscape against increasing rivals, yet it managed to sustain strong sales figures through diversified offerings.
Tesla Shows Signs of Strain Amid Rising Competition
Tesla Shows Signs of Strain Amid Rising Competition
Tesla's recent profit decline raises concerns about its market position as competition heats up globally.
Tesla delivered disheartening financial results on Wednesday, revealing a significant drop in profit for 2024 as competition surged from rivals based in China, Europe, and the United States. Under the leadership of Elon Musk, the company reported a profit of $2.3 billion in the last quarter of the year, a steep decrease from the $7.9 billion reported in the same period the previous year. However, last year's profit included a substantial one-time tax benefit that amounted to $5.9 billion, highlighting that Tesla’s operational profit — excluding this exceptional gain — plummeted by 23 percent during the last quarter.
Despite the profit struggles, sales experienced a modest increase, climbing 2 percent to $25.7 billion in Q4 compared to $25.2 billion in the same quarter of 2023. For the entirety of 2024, Tesla recorded a profit of $7.1 billion, reflecting a drop from $15 billion the year prior, although sales rose slightly to $97.7 billion from $96.8 billion in 2023.
The company has also been diversifying its portfolio by selling batteries for various applications, such as electric utilities and home energy storage systems, bolstering its revenue amid slower car sales. However, Tesla remains heavily dependent on its two primary models, the Model 3 and Model Y, while increasingly competitive offerings from various global manufacturers threaten its market dominance.
Despite the profit struggles, sales experienced a modest increase, climbing 2 percent to $25.7 billion in Q4 compared to $25.2 billion in the same quarter of 2023. For the entirety of 2024, Tesla recorded a profit of $7.1 billion, reflecting a drop from $15 billion the year prior, although sales rose slightly to $97.7 billion from $96.8 billion in 2023.
The company has also been diversifying its portfolio by selling batteries for various applications, such as electric utilities and home energy storage systems, bolstering its revenue amid slower car sales. However, Tesla remains heavily dependent on its two primary models, the Model 3 and Model Y, while increasingly competitive offerings from various global manufacturers threaten its market dominance.
