Tesla’s latest earnings report reveals a rare sales decline and stock dip, as CEO Elon Musk’s escalating controversies and political entanglements raise questions about the brand’s long-term consumer trust and market position.

The final earnings release of 2024 finalized another difficult year for Tesla’s bottom line, as its full-year net income came in at $8.4 billion, a 23% decrease from 2023 and a 40% decline from 2022’s record $14.1 billion profit, though its full-year revenue rose $97.7 billion, a 1% improvement from 2023’s record.

Tesla’s fourth-quarter net income fell 71% from a year ago when results were boosted by a one-time tax benefit

Tesla said it sold 1.79 million vehicles in 2024, the first drop in more than a dozen years despite offers of 0% financing, free charging and low-priced leases