Tesla’s profit fell sharply to $3.1 billion for last quarter of 2024
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Tesla said a self-driving vehicle that can serve as a driverless taxi, called the Cybercab, would go into production in 2026.
PHOTO: REUTERS
Jack Ewing and Neal E. Boudette
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NEW YORK – Tesla on Jan 29 reported a sharp drop in profit for 2024 as rivals in China, Europe and the US chipped away at its lead in the market for electric vehicles.
The company, which is led by billionaire Elon Musk, said it made a profit of US$2.3 billion (S$3.1 billion) during the last three months of 2024. That was a decline compared with US$7.9 billion a year earlier, but 2023’s profit included a one-time tax benefit of US$5.9 billion.
Tesla’s operating profit, which excludes that special gain, fell 23 per cent in the final three months of the year.
Sales rose 2 per cent to US$25.7 billion in the fourth quarter, from US$25.2 billion in the same period in 2023.
The company’s revenue and profit were helped by US$692 million in sales of regulatory credits to other automakers that need them to meet emissions standards. A year earlier, the company generated US$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.
For the full year, profit was US$7.1 billion, Tesla said, down from US$15 billion a year earlier. Sales rose to US$97.7 billion, from US$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 lacklustre car sales.
In its earnings report, Tesla said a new, more advanced version of the Model Y would go on sale in March 2025, with a starting price of around US$60,000. It also said “more affordable” models would go into production in the first half of the year, but provided no details.
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’s 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 Jan 29.
“This is not some far-off, mythical situation,” he said. He added that “2025 is going to be a pivotal year for Tesla”. THE NEW YORK TIMES
