Is Tesla tanking? Profits plummet, Model 3 and Model Y owners abandon ship, and Chinese car brands wait to pick up the pieces

Cracks seem to be appearing in the good ship Tesla, with net profit tanking, some fans seemingly abandoning the company, and other EV brands waiting to scoop up any disgruntled customers.

Questions on whether Tesla would be able to weather the partisan politics of Elon Musk without impact appear to be answered, with Q4, 2024 profits falling more than 70 per cent when compared to the same quarter in 2023.

In a recent investor call, Tesla announced a quarterly profit of US$2.3 billion for the final three months of 2024, down 71 per cent on the brand's 2023 result – though analysts point out the latter was buoyed by a non-cash tax benefit of US$5.9 billion.

Forbes reports Tesla's 2024 net incoming was US$8.4b, a 23 per cent drop from 2023, and 40 per cent down on 2022. Revenue increased by one per cent, to US$97.7b.

It follows from the brand confirming its year-on-year deliveries fell, albeit slightly, for the first time in 2024, from 1,808,581 vehicles in 2023 to 1,789,226 vehicles last year.

Musk's recent public moves have caused division among his Australian fan base, too, with some owners confirming they're "ashamed to drive" their Tesla vehicles.

"I love the car, but I’m ashamed to drive it. Will look to trade it when I can afford to," one user wrote – a view shared by other users.

But others still defend the company's boss, declaring Elon a "a once in a generation entrepreneur and leader -transformational, visionary, inspirational, unstoppable" and declaring the negative feedback a "leftist, false narrative".

At least one Chinese-owned EV group is benefiting, with some customers turning to other electrified options.

“We get a lot of people writing that they don’t like all this,” said Polestar (a Geely sub-brand) global boss Michael Lohscheller.

“It’s important to listen closely to what they say. And I can tell you, a lot of people have very, very negative sentiment.”

Musk, though, remains bullish, telling investors he sees a path to Tesla to be the biggest company in the world.

"I'm not saying it's an easy path, but I see a path for Tesla being the most valuable company in the world by far. There is a path where Tesla is worth more than the next top five companies combined," he told investors.