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Tesla Supplier LG Energy Solution tempers 2024 revenue expectations

(Credit: LGES)

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Tesla supplier LG Energy Solution (LGES) warned of slow revenue growth in 2024. The South Korean battery supplier and Tesla CEO Elon Musk appear to share similar concerns about high interest rates affecting electric vehicle car sales.

LGES announced its Q3 2023 earnings recently. The Korean company warned of slowing revenue growth in 2024 during the announcement. It explained that global economic uncertainties might affect electric vehicle car sales. 

According to local Asian news outlets, LGES joins the growing list of automakers and suppliers who have shown concerns about EV demand during rising interest rates. Companies fear high interest rates may increase financing costs and hinder growth in major economies like China and Europe, impacting car buyers in the long run. 

“LGES shares were down even before the earnings announcement mostly because of GM’s earnings overnight, but we saw further drops during LGES’ earning conference call because the company said it expects revenue growth in 2024 would not be as big as what they saw in 2023, which had an impact on investors who already were concerned about demand,” said Kang Dong-jin, an analyst at Hyundai Motor Securities.

Tesla CEO Elon Musk shared similar concerns about interest rates during the company’s last earnings call. 

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“I am worried about the high interest rate environment that we’re in. I just can’t emphasize this enough: that the vast majority of people buying a car is about the monthly payment. And as interest rates rise, the proportion of that monthly payment that is interest increases naturally,” commented Musk.

“If interest rates remain high or if they go even higher, it’s that much harder for people to buy the car. They simply can’t afford it,” he said.

LGES posted a revenue of KRW 8.22 trillion, down 6.3% quarter-on-quarter and an increase of 7.5% year-over-year. It reported an operating profit of KRW 7.31.2 billion, up 58.7% quarter-on-quarter and 40.1% yoy. 

LG Energy Solution Q3 2023 by Maria Merano on Scribd

The Teslarati team would appreciate hearing from you. If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla hosts Rome Mayor for first Italian FSD Supervised road demo

The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets.

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Credit: @andst7/X

Tesla definitely seems to be actively engaging European officials on FSD’s capabilities, with the company hosting Rome Mayor Roberto Gualtieri and Mobility Assessor Eugenio Patanè for a hands-on road demonstration. 

The event marked the first time an Italian mayor tested the advanced driver-assistance system in person in Rome’s urban streets. This comes amid Tesla’s push for FSD’s EU regulatory approvals in the coming year.

Rome officials experience FSD Supervised

Tesla conducted the demo using a Model 3 equipped with Full Self-Driving (Supervised), tackling typical Roman traffic including complex intersections, roundabouts, pedestrian crossings and mixed users like cars, bikes and scooters.

The system showcased AI-based assisted driving, prioritizing safety while maintaining flow. FSD also handled overtakes and lane decisions, though with constant driver supervision.

Investor Andrea Stroppa detailed the event on X, noting the system’s potential to reduce severe collision risks by up to seven times compared to traditional driving, based on Tesla’s data from billions of global fleet miles. The session highlighted FSD’s role as an assistance tool in its Supervised form, not a replacement, with the driver fully responsible at all times.

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Path to European rollout

Tesla has logged over 1 million kilometers of testing across 17 European countries, including Italy, to refine FSD for local conditions. The fact that Rome officials personally tested FSD Supervised bodes well for the program’s approval, as it suggests that key individuals are closely watching Tesla’s efforts and innovations.

Assessor Patanè also highlighted the administration’s interest in technologies that boost road safety and urban travel quality, viewing them as aids for both private and public transport while respecting rules.

Replies on X urged involving Italy’s Transport Ministry to speed approvals, with one user noting, “Great idea to involve the mayor! It would be necessary to involve components of the Ministry of Transport and the government as soon as possible: it’s they who can accelerate the approval of FSD in Italy.”

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Tesla FSD (Supervised) blows away French journalist after test ride

Cadot described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.

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Credit: Grok Imagine

Tesla’s Full Self-Driving (Supervised) seems to be making waves in Europe, with French tech journalist Julien Cadot recently sharing a positive first-hand experience from a supervised test drive in France. 

Cadot, who tested the system for Numerama after eight years of anticipation since early Autopilot trials, described FSD as “mind-blowing,” both for the safety of the vehicle’s driving and the “humanity” of its driving behaviors.

 

Julien Cadot’s FSD test in France

Cadot announced his upcoming test on X, writing in French: “I’m going to test Tesla’s FSD for Numerama in France. 8 years I’ve been waiting to relive the sensations of our very first contact with the unbridled Autopilot of the 2016s.” He followed up shortly after with an initial reaction, writing: “I don’t want to spoil too much because as media we were allowed to film everything and I have a huge video coming… But: it’s mind-blowing! Both for safety and for the ‘humanity’ of the choices.”

His later posts detailed FSD’s specific maneuvers that he found particularly compelling. These include the vehicle safely overtaking a delivery truck by inches, something Cadot said he personally would avoid to protect his rims, but FSD handled flawlessly. He also praised FSD’s cyclist overtakes, as the system always maintained the required 1.5-meter distance by encroaching on the opposite lane when clear. Ultimately, Cadot noted FSD’s decision-making prioritized safety and advancement, which is pretty remarkable.

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FSD’s ‘human’ edge over Autopilot

When asked if FSD felt light-years ahead of standard Autopilot, Cadot replied: “It’s incomparable, it’s not the same language.” He elaborated on scenarios like bypassing a parked delivery truck across a solid white line, where FSD assessed safety and proceeded just as a human driver might, rather than halting indefinitely. This “humanity” impressed Cadot the most, as it allowed FSD to fluidly navigate real-world chaos like urban Paris traffic. 

Tesla is currently hard at work pushing for the rollout of FSD to several European countries. Recent reports have revealed that Tesla has received approval to operate 19 FSD test vehicles on Spain’s roads, though this number could increase as the program develops. As per the Dirección General de Tráfico (DGT), Tesla would be able to operate its FSD fleet on any national route across Spain. Recent job openings also hint at Tesla starting FSD tests in Austria. Apart from this, the company is also holding FSD demonstrations in Germany, France, and Italy.

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Tesla Optimus shows off its newest capability as progress accelerates

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Credit: Tesla

Tesla Optimus showed off its newest capability as progress on the project continues to accelerate toward an ultimate goal of mass production in the coming years.

Tesla is still developing Optimus and preparing for the first stages of mass production, where units would be sold and shipped to customers. CEO Elon Musk has always marketed the humanoid robot as the biggest product in history, even outside of Tesla, but of all time.

He believes it will eliminate the need to manually perform monotonous tasks, like cleaning, mowing the lawn, and folding laundry.

However, lately, Musk has revealed even bigger plans for Optimus, including the ability to relieve humans of work entirely within the next 20 years.

Development at Tesla’s Artificial Intelligence and Robotics teams has progressed, and a new video was shown of the robot taking a light jog with what appeared to be some pretty natural form:

Optimus has also made several public appearances lately, including one at the Neural Information Processing Systems, or NeurIPS Conference. Some spectators shared videos of Optimus’s charging rig, as well as its movements and capabilities, most interestingly, the hand:

The hand, forearm, and fingers have been one of the most evident challenges for Tesla in recent times, especially as it continues to work on its 3rd Generation iteration of Optimus.

Musk said during the Q3 Earnings Call:

“I don’t want to downplay the difficulty, but it’s an incredibly difficult thing, especially to create a hand that is as dexterous and capable as the human hand, which is incredible. The human hand is an incredible thing. The more you study the human hand, the more incredible you realize it is, and why you need four fingers and a thumb, why the fingers have certain degrees of freedom, why the various muscles are of different strengths, and fingers are of different lengths. It turns out that those are all there for a reason.”

The interesting part of the Optimus program so far is the fact that Tesla has made a lot of progress with other portions of the project, like movement, for example, which appears to have come a long way.

However, without a functional hand and fingers, Optimus could be rendered relatively useless, so it is evident that it has to figure this crucial part out first.

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