Tesla's fourth-quarter profit plunged 71% despite a slight revenue increase, raising questions about the company's future. Regulatory credits and the Cybertruck's performance are key factors in the decline.
Tesla reported a net profit of just $2.3 billion in the fourth quarter of 2024, a 71 percent drop from the $5.6 billion profit recorded in the same period a year earlier. This decline occurred despite a slight increase in revenue. While Tesla 's 2023 profits were boosted by a one-time tax benefit of $5.9 billion, even excluding this benefit, there was still a staggering 23 percent plunge in operating income for the fourth quarter. Tesla 's revenue remains high overall, reaching $97.
7 billion for 2024, a one percent increase from the previous year. However, for the latest quarter, the situation appears less rosy. A significant portion of Tesla's revenue, $692 million, stemmed from the sale of regulatory credits. These credits are earned by producing zero-or-low emission vehicles and can be sold to other automakers struggling to meet emissions standards. This revenue stream is considered questionable and could soon diminish due to the potential dismantling of the regulations that enable it. Notably, Donald Trump, a close associate of Tesla CEO Elon Musk, has expressed his intention to end these regulations. Tesla's automotive revenues also experienced a decline, dropping from $82.4 billion in 2023 to $77 billion in 2024. This decrease, despite Tesla being the largest electric vehicle manufacturer in the US, may be partly attributed to Musk's focus on the controversial Cybertruck. The Cybertruck, launched in low volumes and facing criticism for its unconventional design and reported quality issues, could be impacting overall sales. Increasingly, doubts are being raised about Musk's suitability to lead Tesla, especially considering his ongoing involvement in cultural battles and his influence within US politics. Musk is making significant investments in artificial intelligence and pushing forward with a controversial foray into the robotaxi market. The long-term success of these ventures remains uncertain
Tesla Profits Revenue Regulatory Credits Cybertruck Elon Musk Artificial Intelligence Robotaxi Automotive Industry Electric Vehicles
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Despite rally in Tesla stock, US election could risk ~40% of profits: JPMorganDespite rally in Tesla stock, US election could risk ~40% of profits: JPMorgan
Read more »
Dogecoin and Shiba Inu Prices Plummet, Traders Book ProfitsDogecoin and Shiba Inu experienced significant price drops, breaking below key support levels. Santiment data reveals massive spikes in NPL, showing traders are realizing profits. Both memecoins' RSI indicators suggest a continuation of the downtrend.
Read more »
Elevance Health 2024 Profits Hit $6 Billion Despite Rising CostsElevance Health reported nearly $6 billion in 2024 profits including $418 million in the fourth quarter as the health insurer worked to overcome rising medical expense.
Read more »
Tesla’s profits slide over 70 percent in the fourth quarterTesla released its fourth quarter earnings for 2024, amid questions about the company’s future and Elon Musk’s government roles.
Read more »
Tesla's Q4 Profits Soared Thanks to New Bitcoin Accounting RulesTesla's fourth-quarter net income saw a significant boost due to a change in how companies account for their digital asset holdings. The new accounting standard, which requires marking digital assets to market each quarter, led to a surge in reported value. This resulted in a $600 million increase in net income for Tesla, primarily attributed to the rise in Bitcoin's value.
Read more »
Tesla's Q4 Profits Boosted by Bitcoin Accounting ChangeTesla's fourth-quarter net income saw a significant increase thanks to a new accounting standard for digital assets. The company reported a $600 million mark-to-market benefit from bitcoin, reflecting the rising value of its cryptocurrency holdings. While Tesla's overall revenue fell short of expectations, the stock gained in after-hours trading.
Read more »