Tesla reported lower than expected profits Wednesday, citing declining vehicle prices as a factor as it projected a return to volume growth in 2025.
Elon Musk’s electric car company reported fourth-quarter profits of $2.3 billion, down 71 percent from the year-ago quarter, where profits were boosted by a one-time tax benefit.
Revenues rose two percent to $25.7 billion, also missing analyst estimates.
The results — the first since the return of Musk ally Donald Trump to the White House — capped a mixed year for Tesla in which Musk’s big bet on US electoral politics was countered by profit pressures as Tesla’s streak of annual car volume growth came to an end.
Full-year auto sales fell one percent to just under 1.8 million vehicles.
Tesla has been confronted by intensifying EV competition in leading markets, including China and the United States, where General Motors and Ford have introduced more models.
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