Musk also predicted 2024 vehicle deliveries would be higher, stressing Tesla’s focus on full-self driving (FSD) during the earnings call.
However, Tesla stock began rallying immediately following Q1 results.
Tesla Stock: Musk Predicts Higher 2024 Vehicle Deliveries The Tesla chief also said on the earnings call that he expects 2024 vehicle deliveries to grow compared to 2023.
Tesla Stock Performance TSLA shares gained 12% to 161.92, hitting an intraday high of 167.97, during market action Wednesday.
TSLA stock on Monday fell 3.4% to 142.05, hitting a low of 138.80 intraday.
Tesla stock ranks eighth in the 35-member IBD Auto Manufacturers industry group.
Tesla stock also has a 10 Relative Strength Rating and a 65 EPS Rating.
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Late on Tuesday, Tesla (TSLA) released revenue and earnings results for the first quarter that were below expectations. TSLA shares surged 12 percent on Wednesday after Chief Executive Elon Musk hinted that “more affordable” new models are on the way, but investors didn’t seem to care. Musk also highlighted Tesla’s emphasis on full-self driving (FSD) during the earnings call by predicting a rise in car deliveries by 2024.
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A 52-week low of 138.80 was reached on Monday, just before Tesla announced its first-quarter earnings on Tuesday. The company’s shares had dropped more than 17 percent in April. Investor mood appeared dejected. But after the Q1 results, Tesla’s stock started to rise. These explanations explain why.
An Affordable Car Is On The Way.
Reports surfaced prior to the company’s earnings that Tesla had shelved, or put on hold, plans to build its $25,000 next-generation Model 2.
Tesla did, however, announce that it has revised its “future vehicle lineup to accelerate the launch of new models ahead of our previously announced start of production in the second half of 2025.”. “.
According to Tesla, these new cars will “use aspects of the next generation platform as well as aspects of our current platforms” and include “more affordable models.”. On the same production lines as its current vehicle lineup, Tesla claimed it could build these new cars.
The new model line will launch early in 2025, Musk stated during the earnings call, “if not late this year.”. ****.
The company’s low-cost vehicle plans were not discussed in further detail by executives.
Longtime Tesla bull Dan Ives, an analyst at Wedbush Securities, wrote on Wednesday that it looks like Tesla is choosing a “Model 2.5” rather than a Model 2.
“We feel this is the right strategy and move at the right time,” Ives wrote, “even though it’s not a next generation Model 2 platform.”.
Musk expects higher car deliveries in 2024 for Tesla stock.
The Tesla CEO also stated during the earnings call that he anticipates a rise in vehicle deliveries in 2024 over 2023. The massive EV manufacturer saw record-breaking 1.81 million deliveries in 2023. But it seems like this year’s demand for EVs is tapering down.
Early in April, Tesla revealed that, despite producing 433,371 cars, its first-quarter global deliveries came to a total of 386,810. In total, 369,783 Model 3 and Model Y units as well as 17,027 “other” vehicles were delivered.
Tesla’s first-quarter delivery total of 386,810 exceeded even the most optimistic projections, and it is the lowest since Q2 2022, when it was 344,000. Subsequently, analysts have revised downward delivery projections.
Morgan Stanley analyst Adam Jonas wrote on Wednesday, “Apart from further price cuts we believe full-year sales growth may require help from the market as well as seamless execution on cheaper new model introductions.”.
With 28 days of global vehicle inventory at the end of the first quarter, Tesla’s inventory was 87% higher than it was in the first quarter of 2023. Excluding regulatory credits, auto gross profit margins came in at 16:4%, surpassing analysts’ projections of 15:9%.
On Tuesday, Musk stated, “We think Q2 will be a lot better.”.
Next-Generation Platforms: Ride Share and Robotaxi.
On Tuesday, Musk and Tesla also talked a lot about FSD, autonomy, and AI.
Not too long ago, Tesla switched from FSD Beta to supervised FSD for fully autonomous driving. In regulatory filings, the EV behemoth stated that by the end of Q1, it would recognize $281 million in deferred revenue.
During the earnings call, Musk stated, “The way to think of Tesla is almost entirely in terms of solving autonomy and being able to turn on that autonomy for a gigantic fleet.”.
He later added that “if somebody doesn’t believe Tesla is going to solve autonomy, I think they should not be an investor in the company. “.
The CEO of Tesla also disclosed that the business will be “showcasing” its robotaxi, or “cybercab,” on August 18. 8 and that further discussion about an inexpensive car will take place then.
Due to its $1 billion investment in “AI infrastructure,” Tesla’s free cash flow also experienced a $2.55 billion negative impact in Q1. “.”.
In the “coming months,” the company said, it will “continue to increase” the capacity of its AI infrastructure, and it is presently developing ride-hailing functionality that will be “available in the future.”. “.
This might put Lyft (LYFT) and Uber (UBER) in competition with Tesla.
On Wednesday, Jonas stated that Tesla’s ultimate objective is to provide self-driving cars for ride-hailing services. As per Jonas, the initial approach will depend on “human-supervised FSD” provided by a combination of Tesla owners and a fleet owned by Tesla.
Tesla’s stock performance.
During trading on Wednesday, TSLA shares increased by 12% to 161.92, reaching an intraday high of 167.97. 144.69 was the Tuesday closing price for Tesla stock, up 1.9 percent. With a low of 138.80 intraday, TSLA’s stock fell 3.4 percent on Monday to 142.05. The stock of Tesla fell 14% last week, surpassing lows set in April 2023.
Within the 35-member IBD Auto Manufacturers industry group, Tesla’s stock is ranked eighth. Of a possible 99, the stock has a Composite Rating of 26. Additionally, Tesla stock has an EPS rating of 65 and a Relative Strength Rating of 10.
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