Tesla on Wednesday reported a sharp drop in profit for 2024 as rivals in China, Europe and the United States chipped away at its lead in the market for electric cars.

The company, which is led by Elon Musk, said it made a profit of $2.3 billion during the last three months of 2024. That was a decline compared with $7.9 billion a year earlier, but 2023’s profit included a one-time tax benefit of $5.9 billion. Tesla’s operating profit, which excludes that special gain, fell 23 percent in the final three months of the year.

Sales rose 2 percent to $25.7 billion in the fourth quarter, from $25.2 billion in the same period in 2023.

The company’s revenue and profit were helped by $692 million in sales of regulatory credits to other automakers that need them to meet emissions standards. A year earlier, the company generated $433 million from such sales. The Trump administration and Republicans in Congress have said they intend to repeal the regulations that allow Tesla to sell such credits.

For the full year, profit was $7.1 billion, Tesla said, down from $15 billion a year earlier. Sales rose to $97.7 billion, from $96.8 billion in 2023.

Tesla also sells batteries used by electric utilities, businesses and homes to store energy from solar panels and other sources. Increased sales of those products helped compensate for lackluster car sales.

Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber? Log in.

Want all of The Times? Subscribe.