Tesla Faces Financial Strains Amidst EV Competition

Tesla's recent financial performance revealed a modest 2% revenue growth to $25.71 billion in Q4 2024, alongside a sharp 71% year-on-year decline in net income to $2.3 billion. This downturn occurs amidst increased competition in the EV market and marks the first year-over-year decline in vehicle deliveries in a decade. Nonetheless, Tesla's energy division demonstrated significant growth with a 113% increase in revenue, suggesting potential expansion beyond its automotive focus. Investor concerns persist regarding Elon Musk's commitment to Tesla due to his various ventures and ties with the Trump administration. Analysts remain divided on Tesla's stock outlook, with some predicting a potential price drop, while others see benefits from Musk's government connections. The upcoming year is seen as crucial for Tesla, especially with advancements in Full Self-Driving capabilities and new model releases.