It’s been a bumpy ride for Tesla lately. The electric car giant, led by Elon Musk, saw its profits take a nosedive in 2024 as competitors around the world stepped up their game. While Tesla’s self-driving technology still has investors excited, the company’s financial results tell a different story.

Tesla reported a profit of $2.3 billion in the last quarter of 2024, a steep drop from $7.9 billion the year before. Sure, 2023’s numbers included a one-time tax boost of $5.9 billion, but even without that, operating profit still fell by 23%. Sales inched up slightly, reaching $25.7 billion in the fourth quarter, but it’s clear the company is feeling the heat.

For the full year, Tesla’s profit landed at $7.1 billion, down from $15 billion in 2023. Sales did grow a bit, climbing to $97.7 billion, but that wasn’t enough to offset the challenges. One bright spot? Tesla’s energy storage business, which includes batteries for homes and businesses, helped pick up some of the slack as car sales struggled.

The issue? Tesla still relies heavily on its Model 3 sedan and Model Y SUV for most of its car sales. Meanwhile, rivals in Asia, Europe, and the U.S. are expanding their electric vehicle lineups, offering more options to customers. To stay competitive, Tesla has been slashing prices and offering low-interest financing, but those moves have eaten into profits.

So, what’s next for Tesla? The company’s future might hinge on its self-driving technology. Investors are betting big on it, but for now, Tesla’s financials show that the road ahead won’t be easy. Will they steer back on track? Only time will tell.