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 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

Tesla posted a rare earnings miss for the last quarter of 2024, coupled with disappointing results amid weak sales and revenue leading to thinning profit margins.

That said, Tesla remains one of the most expensive stocks in the market right now. There are very few examples where paying 122 times forward earnings turned out to be a good investment. If Tesla’s automation promises end up taking years and years like FSD, there is going to be a lot of downside risk. It might be time to start taking some profit.

Tesla is expected to report earnings after Wednesday's close and here is a closer look at what Wall Street expects.

Tesla stock opened down 0.7% at $395.19 ahead of earnings. Coming into this report, Tesla stock has fallen for five of the past six trading days, losing almost 7% over that span. The year-over-year gain is worth more than the market value of General Motors,