Tesla recently shared its financial report for the last quarter of 2024. The company, under the leadership of Elon Musk, saw a significant drop in profits. Compared to the previous year, Tesla's earnings fell from $7. 9 billion to $2. 3 billion, a notable decline. However, it's essential to remember that 2023's high profit included a substantial one-time tax benefit of $5. 9 billion. Without this extraordinary gain, the operating profit actually dropped by 23% during the final quarter of 2024.

Despite the decrease in profit, Tesla's sales managed to rise slightly, reaching $25. 7 billion. This is a 2% increase from the $25. 2 billion recorded in the same period of 2023. One of the factors contributing to Tesla's revenue was the sale of regulatory credits. The company earned $692 million from these sales, compared to $433 million a year earlier. These credits are crucial for other automakers to meet emissions standards. However, there's growing discussion among political figures in the United States, including those in the Trump administration and members of Congress, about repealing the regulations that make these credit sales possible.

Competition from other electric vehicle manufacturers in China, Europe, and the United States is also impacting Tesla's market position. Rivals are steadily narrowing the gap, which could further affect Tesla's financial performance in the coming quarters.

Tesla's Latest Earnings: A Closer Look at 2024

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