Tesla’s 2024 financial results are in, and they’re not exactly something to brag about. The electric vehicle giant released its figures on Wednesday, and the numbers are pretty grim. Turns out, a big chunk of its profit—40% to be exact—came not from selling cars but from selling regulatory credits to other automakers.

Let’s break it down.

In the last quarter of 2024, Tesla’s car revenue dropped by 8% compared to the same period in 2023, coming in at $19.8 billion. Sure, its energy and storage business doubled, but that only brought in $3 billion. Services also grew by 31%, but again, that only added $2.8 billion to the pot. Overall, total revenue for the quarter was up just 2%, but income fell by 23%, and operating margins hit a low of 6.2%—way below the industry average of 10%.

The full year wasn’t any better. Car revenue fell by 6% to $77 billion, while energy and storage grew by 67% to $10 billion. Services brought in $10.5 billion, up 27%. Total revenue for the year only increased by 1%, but here’s the kicker: net profits dropped a whopping 53% to $7.1 billion. That’s Tesla’s worst performance since 2021.

And here’s the real eye-opener: $2.8 billion of that profit came from selling regulatory credits, not from selling cars or even supercharger access.

So, while Tesla’s stock price soared by 103% in 2024, the company’s financial health seems to be on shaky ground. Investors might want to keep an eye on how Tesla plans to turn things around in 2025.