Tesla Q1 - Short of expectations

Tesla announced its quarterly results on Tuesday, falling slightly short of expectations due to slowing demand in the electric vehicle market. However, shares surged by 11% as CEO Elon Musk revealed plans to increase production of more affordable models. A welcome move from the car company, whose share price has been one of the worst performers this year.

In the first quarter, Tesla manufactured 433 371 cars, made up of 412 000 Model 3 and Model Y units, a slight 2% decrease year-on-year. In terms of deliveries, the company shipped out 386 810 cars, with nearly 370 000 being Model 3 and Model Y units. This delivery volume represented a 9% decline year-over-year.

This led to Tesla reporting profits that halved to $1.1 billion on revenue of $21.30 billion, down 9% year-on-year. Tesla was able to report these numbers despite challenges like supply chain disruptions and production facility incidents, including Houthi attacks and environmental activism.

Additionally, Musk reiterated Tesla's commitment to autonomous vehicles, framing the company as an AI robotics firm. He emphasised that those who doubt Tesla's ability to achieve autonomy might want to reconsider their investment in the company. Spicy!

Tesla's upcoming autonomous ride-hailing service (or robotaxis) will compete with companies like Uber and Waymo. The EV-maker plans to have their own fleet of vehicles but the main business will be Tesla owners renting their cars out for the service, similar to Airbnb. I'm still processing that in my head.

These new models, expected to roll out in the second half of next year, will leverage aspects of both the next-generation platform and the current one. Musk hinted that further details about these vehicles would be unveiled in August.

These developments suggest a bold vision for Tesla's future, which is poised to transform both the automotive and transportation sectors. Investing in Tesla means aligning with innovation and progress in human endeavours.