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LIVE BLOG: Tesla (TSLA) Q3 2024 earnings call

Credit: Tesla

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Tesla’s (NASDAQ:TSLA) Q3 2024 earnings call comes on the heels of the company’s Q3 2024 Update Letter, which was released after the closing bell on Wednesday, October 23, 2024. 

Tesla posted total revenues of $25.18 billion, with automotive revenues of $20.02 billion in Q3 2024. The company also posted non-GAAP earnings per share of $0.72 and GAAP EPS of $0.62. Tesla posted $2.7 billion GAAP operating income in the third quarter, and a record $33.6 billion in cash.

The following are live updates from Tesla’s Q3 2024 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story. The first entry starts at the bottom of the page. 

17:38 CDT – And that’s a wrap for Tesla’s Q3 2024 earnings call! Thank you so much for tuning in. We’ll see you on the next event!

17:35 CDT – Adam Jonas from Morgan Stanley asks about the relationship between Tesla and xAI. Are the two companies working together, or are they competing? Elon Musk notes that xAI has been helpful to Tesla AI quite a number of times. Musk also highlighted that xAI is trying to make artificial general intelligence or superintelligence. Tesla is trying to make autonomous cars.

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“Tesla is focused on real-world AI. It’s quite different from an LLM,” Musk said.

17:27 CDT – Elon Musk admitted that there is a chance HW3 vehicles would not achieve the necessary safety level for unsupervised FSD. If this were to be the case, Musk noted that Tesla would replace Hardware 3 with Hardware 4 free of charge, at least for those who purchased FSD.

“There is some chance that HW3 does not achieve a safety level that allows for unsupervised FSD. If that turns out to be the case, we will upgrade those two have bought HW3 FSD for free,” Musk said.

17:24 CDT – A question about the Roadster is asked. Musk admitted that the Roadster’s reservation holders have been suffering for a while. He adds that the Roadster is the cherry on top of the icing on the cake. He did, however, state that the Roadster would have to be behind some of the company’s more prudent products.

17:18 CDT – All of the Tesla Semi that have been deployed, around 200 so far, are equipped with the necessary equipment for FSD. Musk noted that FSD would be a huge step for safety for trucks. 

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Another question is asked about Unsupervised FSD’s deployment in CA next year. Elon Musk noted that California loves regulations, but he would be shocked if Tesla does not get approved next year. Companies like Waymo are able to deploy driverless cars in the state, after all. 

Musk quipped that there should be a federal approval process for autonomous vehicles. “I think we should have this national approval process for autonomy,” Musk said.

17:13 CDT – Another question is asked about the Tesla Semi. Tesla executives noted that the facility is on track to start initial builds next year, with production ramping full blast in 2026. Musk noted that there is “ridiculous demand” for the Semi considering the vehicle’s extremely low cost per mile. 

Tesla executives noted that the Semi’s potential is already being proven by clients like PepsiCo. PepsiCo’s drivers do not want to drive any other truck once they try out the Semi. 

17:09 CDT – Musk highlighted that the Cybercab is technically a $25,000 car, but it is an autonomous car, not manually driven. 

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Another question is asked about alleviating wait times at service centers. Company executives highlighted that Tesla is still focused on making vehicles that require as little service as possible. 

Tesla, however, is coming up with a system that is inspired by a factory, where there are different lanes that are dedicated to different types of repairs. Automation is also a huge priority.

17:05 CDT – Elon Musk highlighted that the Cybercab does not just feature revolutionary design. It also features revolutionary manufacturing. “It is just really something special,” Musk said. 

17:03 CDT – Investor questions begin! First question is about the more affordable car. Tesla executives reiterated that plans are underway to produce more affordable cars in the first half of next year. This, however, likely involves lowering the cost of current vehicles. 

As for the $25,000 non-Robotaxi car, executives highlighted that Tesla is all in on autonomy. So there are no plans to produce a non-autonomous version of the Cybercab.

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17:00 CDT – The CFO highlighted Tesla Energy’s margins, which passed 30% in Q3. This was due to a mix of projects during the quarter. He also noted that Tesla Energy is already filling in its 2024 production slots. 

Tesla’s operating expenses declined quarter over quarter and year over year, partly due to the company’s restructuring, which happened in Q2. 

16:58 CDT – Tesla’s CFO takes the stage. He noted that Tesla’s automotive revenues grew quarter over quarter and year over year. Tesla’s sales grew despite ASPs dropping.

He notes that Tesla is determined to grow unit volume while avoiding a buildup of inventory. To support this strategy, Tesla is rolling out compelling financing options that make its vehicles more attainable to consumers. 

Automotive margins improved quarter over quarter as well. The executive also highlighted that Tesla is focused on the cost per vehicle, and there are numerous work streams within the company to squeeze that cost without compromising on customer experience.

16:53 CDT – Elon Musk noted that progress is being made in the Optimus program. He mentioned Optimus’ next-generation hand, which features 22 degrees of freedom.

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“I feel confident saying that we have the most advanced humanoid robot by a long shot,” Musk said, adding that rival robots are missing the AI brain, if not the ability to produce the robots at very high volumes. Tesla has both, so the company’s potential to lead the sector is notable.

““I think Optimus will be the most valuable part of Tesla,” Musk said.

Musk also discussed Tesla Energy, particularly its Megafactories. He noted that Lathrop is ramped, and Shanghai is progressing well. “It won’t be long before we’re sipping 100 GWh a year of stationary storage at Tesla,” Musk said. Musk noted that Tesla needs its energy business to scale so the company can move the needle in the energy sector.

16:48 CDT – Elon Musk reiterated Tesla’s target of rolling out a ride-hailing service next year in California and Texas next year depending on regulatory approval.

He also noted that Tesla is no longer training compute-constrained. “The FSD is actually getting so good that it takes us a while to find mistakes. It takes a lot to figure out if Software A is better than Software B, since neither one of them are making mistakes,” Musk said.

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16:46 CDT – Musk noted that Tesla’s internal estimate is that FSD would be safer than a human driver by Q2 next year. 

“There’s no need to wait for the Robotaxi or the Cybercab to experience full autonomy. We expect to achieve that next year, with our existing vehicle line,” Musk said. He also noted that Tesla employees in the Bay Area now have an autonomous ride-hailing service. The service still uses safety drivers, though.

16:41 CDT – This does not mean to say that Tesla will not be relying on battery suppliers, of course. The growth of Tesla Energy and the company’s other businesses requires a lot of suppliers. 

Musk also discussed the progress of FSD, such as the release of V12.5 and the Cybertruck’s FSD, as well as Actual Smart Summon (A.S.S.). He notes that FSD V13 is expected to be rolled out soon. V13 is expected to see 5-6x improvement in miles between interventions. 

16:38 CDT – Musk noted that Tesla is still on track to deliver more affordable vehicles starting in the first half of 2025. “I do want to give some rough estimate, which is, I think, 20-30% growth next year,” Musk said. He also noted that he is “confident of Cybercab reaching volume production in 2026.” Tesla is estimating a production of 2 million Cybercabs per year. 

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Musk stated that the 4680 lines are doing well. Tesla’s 4680 is rapidly approaching the point where it os the most competitive cell in the market. “I think if we execute well, Tesla’s internally produced cell will be the most cost-competitive cell in North America,” Musk said.

16:35 CDT – Elon Musk makes his opening remarks. He gives a quick recap of Q3. He notes that Tesla achieved record deliveries at a time when the entire industry is challenged. “It’s notable that Tesla is profitable despite a very challenging automotive environment,” Musk said, highlighting that this quarter is a record Q3 for the company. 

He notes that Tesla produced its 7 millionth car yesterday. He congratulates the Tesla team for pulling the feat off. Musk also stated that Tesla Energy is doing well. He also states that the “Tesla team did a phenomenal job” during the “We, Robot” event. 

16:32 CDT – Tesla’s Head of Investor Relations opens the Q3 earnings call. Elon Musk and a number of executives are present.

Let’s go!

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16:29 CDT – One minute to go! Let’s see if this call starts on time.

16:28 CDT – Tesla bull Gary Black of The Future Fund summarized the Q3 earnings results pretty well. It’s a beat.

16:25 CDT – It’s five minutes before the earnings call and there’s still no music. Oh, boy, I hope they start this one on time. No reason to be late anyway, since the Q3 results were extremely impressive. TSLA stock after hours is up 9.44% as of writing.

Aaand there’s Tesla’s techno music. We’re close, everyone.

16:15 CDT – Hello, everyone, and welcome to our live blog of Tesla’s third quarter 2024 earnings call. Tesla’s Q3 results are the best we’ve seen in a long time, so this upcoming earnings call will probably be pretty memorable. Especially impressive was the fact that the Cybertruck reached positive gross margin in the third quarter. That’s pretty nuts!

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Here’s the livestream of Tesla’s Q3 2024 earnings call.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Investor's Corner

Tesla hints at ‘Model 2’ & next-gen EV designs

Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

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(Credit: Tesla)

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.

Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.

“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.

“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”

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In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”

Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.

It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.

The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.

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Tesla regains Piper Sandler’s confidence with Robotaxi plans & Q1 Results

Piper Sandler says Tesla delivered the best-case scenario for bulls. $TSLA has catalysts ahead to silence the bears.

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(Credit: Tesla)

Tesla gained Piper Sandler analyst Alexander Potter’s confidence following its Q1 2025 earnings call. Piper Sandler reaffirmed its Overweight rating and $400 TSLA price target, signaling optimism for the company’s robotaxi and affordable vehicle launches expected this year. The firm’s stance reflects Tesla’s resilience amid market challenges.

Despite expectations of weak Q1 financials, Tesla’s stock edged up in after-hours trading, defying skepticism. Piper Sandler’s Alexander Potter noted that the results met the hopes of Tesla supporters, particularly as the company held firm on its timelines. Potter emphasized that anticipation for robotaxi details and new vehicle launches should keep critics at bay, supporting the $400 target.

“In our preview last week, we predicted that (at best) Q1 would be a non-event. With the stock trading up slightly in the after-hours session, it appears our best-case scenario has materialized. Considering generally weak Q1 financials, we think this is the best result that TSLA bulls could’ve reasonably hoped for.

“In our view, the most important Q1 takeaway is this: Tesla didn’t hedge expectations re: launching Robotaxis or lower-priced vehicles in 1H25. With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead. In our view, this alone should be enough to keep the bears at bay, at least until we have a better idea re: the details of Tesla’s new products, as well as the scale/scope of the Robotaxi launch,” wrote Potter.

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Wedbush Securities’ Dan Ives, a longtime TSLA bull, echoed Potter’s optimism for Tesla. Ives raised his price target for Tesla stock from $315 to $350 with a BUY rating. His Tesla upgrade came after Elon Musk’s announcement during the Q1 earnings call that he would reduce his involvement with DOGE, signaling a sharper focus on Tesla.

Tesla’s steady Q1 performance and unwavering commitment to its 2025 roadmap, including the Robotaxi launch and lower-priced models, bolster investor confidence. Piper Sandler’s analysis underscores Tesla’s ability to navigate a competitive electric vehicle market while advancing its technological edge. The upcoming Robotaxi launch and affordable vehicle introductions are pivotal, with analysts expecting these initiatives to drive stock value through 2025.

As Tesla prepares for these milestones, its stock movement reflects market trust in Musk’s vision. With Piper Sandler and Wedbush reaffirming bullish outlooks, Tesla’s strategic moves will remain under close scrutiny, positioning the company to capitalize on its innovation pipeline in a dynamic industry landscape.

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Investor's Corner

LIVE BLOG: Tesla (TSLA) Q1 2025 Company Update and earnings call

The following are live updates from Tesla’s Q1 2025 earnings call.

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Credit: Tesla

Tesla’s (NASDAQ:TSLA) Q1 2025 earnings call comes on the heels of the company’s Q1 2025 Update, which was released after the closing bell on April 22, 2025.

Tesla’s Q1 2025 Results: 

  • Total Revenues: $19.3 billion
  • Total automotive revenues: $13.967 billion
  • Total GAAP gross margin: 16.3%
  • Gross Profit: $3.15 billion
  • EPS non-GAAP: $0.27 per share
  • Free cash flow: $664 million

The following are live updates from Tesla’s Q1 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.

16:20 CT – Hello, and happy earnings day to everyone! While Tesla missed the Street’s expectations, the stock has not shown its typical volatility at all. That being said, this earnings call is quite interesting due to the upcoming “Company Update.”

Tesla also reiterated its section about new vehicles that “remain on track for start of production in the first half of 2025” in its Update Letter. What are these vehicles? Just variants of the Model 3 or Model Y? Was the Cybertruck LR RWD one of them already? Or are they actually new cars that we’ve just never seen before?

Either way, ten minutes and counting.

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16:27 CT – Now I’m just curious if the Company Update will be a video. The thumbnail Tesla is using on X and YouTube shows an “Audio Webcast Only” graphic though. Three minutes and counting.

16:28 CT – And there’s the music. Wonder if it’s going to be on time.

16:34 CT – Annd we’re now on the Elon time threshold. Tesla stock is actually up 4% in after-hours today. Pretty nutty considering that the Q1 earnings are a miss.

16:36 CT – The earnings call is formally starting. Here we go.
Elon Musk takes the stage. “There’s never dull moment these days,” he said. He admits to the blowback from his work with DOGE. He also admitted that those against DOGE are bound to attack him and his companies, such as Tesla. Musk reiterates his belief that it’s important to fight waste and fraud. “I think it’s critical work,” Musk said.

16:40 CT – Musk discusses the protests against Tesla. He alleges that the protests are not organic. “The actual reason for the protests is that those who are receiving the waste and fraud want to continue receiving the waste and fraud,” he said.

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Musk notes that starting next month, in May, his time allocation for DOGE will drop significantly. He will continue to spend a day or two on government matters or as long as the U.S. President wishes him to. “Starting next month, I will be allocating more of my time with Tesla,” Musk stated.

16:43 CT – Musk noted that Tesla is no stranger to challenges, but Tesla has been through the ringer several times in the past. “We’re not on the ragged edge of death….not even close,” he said.

He also highlighted that Tesla is on the cusp of autonomous cars and autonomous humanoid robots. Musk expects unexpected bumps this year, but he remains confident on the future of Tesla. The idea of Tesla potentially being the most valuable company in the world by far was reiterated. “Maybe as valuable than the next five companies combined,” he said. 

“We expect to be selling fully autonomous rides in June in August,” Musk stated. He also stated that autonomy in cars will affect the bottom line by mid-2026.

16:47 CT – Musk discusses Tesla’s supply chain, highlighting that Tesla is the least affected automaker by the Trump tariffs. That being said, Tesla has been working to localize its supply chains for years. He admitted that tariffs are tough on companies where the margins are so low. Musk also clarified that he continues to advocate for lower tariffs, but that’s all he can do. Trump has the decision.

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“The tariff decision is entirely up to the President of the United States. I will weigh in on the decision, but its primarily up to the President. I continue to advocate for lower tariffs rather than higher tariffs,” Musk said.

16:50 CT – Musk noted that he would now explain why he is very excited for Tesla’s future. He noted that Tesla is laser-focused on bringing autonomy in June in Austin, Texas. He highlights Tesla’s general approach to autonomy. 

“We have a general solution (to autonomy) rather than a specific solution,” Musk said.

He also noted that Tesla expects to use thousands of Optimus robots in its factories this year. He expects Optimus’ ramp would be one of the fastest. By 2030, or 2029, a million Optimus per year is plausible.

16:52 CT – Musk highlighted that the Tesla Energy unit is doing very well. “We expect the stationary energy storage to scale to terawatts per year,” he said.

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16:54 CT – Musk stated that Tesla chose to update the Model Y in Q1 because the first quarter tends to be the weakest. People do not usually buy a lot of cars in winter, after all. He highlighted that the Model Y is the world’s best-selling cars. 

“We picked Q1 to cut over to the production of the new Model Y…at the same time in factories across the world,” Musk stated, adding that, “In conclusion, while there are many headwinds, the future of Tesla is brighter than ever.”

He thanks the Tesla team and stated that he is looking forward to leading the team.

16:56 CT – Tesla CFO Vaibhav Taneja takes the stage. He explained the company’s reduced vehicle deliveries, which were caused by the changeover to the new Model Y across its factories. He also noted that the negative effects of vandalism and unwarranted hostility towards Tesla and its staff affected sales in some areas.

The CFO noted that even with these challenges, Tesla was able to sell out legacy Model Y in Q1. “We have an extremely competitive vehicle lineup and after that we have FSD,” he said.

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17:03 CT – Taneja noted that the Powerwall 3 has been received well by customers and Tesla is currently supply constrained.

He also discusses the effects of tariffs, though he highlighted that Tesla is a very American automaker. Tesla is not immune to the tariffs, but the company could navigate the challenging landscape better than other automakers. That said, Tesla’s US lineup complies with USMCA by 85%. The company is working on non-China battery suppliers as well.

17:06 CT – Say Questions begin. First up is a question about the highest risk items on the critical path to robotaxi launch and scaling. Elon stated that robotaxis in June in Austin will be comprised of a Model Y fleet.

“Teslas that will be fully autonomous in Austin will be Model Ys,” Musk said, adding that Tesla’s paid autonomous rides will be coming to other cities later this year. “I predict there will be millions of Teslas operating fully autonomously in the second half of next year [in the US].”

Musk did state that there will be some localized parameters for Tesla’s paid autonomous rides in different regions, like snowy areas. A good driver in California won’t be as good in the middle of a blizzard in winter, after all.

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17:09 CT – Ashok Elluswamy, VP of Autopilot/AI Software at Tesla, noted that localized parameters still follow Tesla’s general approach to autonomous cars. He also highlighted that validation is still critical for robotaxi operations. In Tesla’s factories today alone, there could be many days without interventions, making it hard to figure out if FSD Unsupervised is working as intended.

Musk and Taneja joked that Tesla customers in China are really pushing FSD to its limits. People in China “putting [FSD] to the real test,” Musk stated.

Cybercab is also in sample validation now, and it’s still scheduled for production next year.

17:12 CT – Another question is asked, this time about when FSD Unsupervised will be released. “Before the end of this year” in the United States, Musk stated, adding that FSD Unsupervised must be meaningfully safer than human drivers before it is released.

17:15 CT – A question about Tesla’s new cheaper models is asked, and if the company is focused on simplified versions to enhance affordability, similar to the RWD Cybertruck.

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Tesla VP of Vehicle Engineering Lars Moravy noted that these cheaper vehicles are still on track. The ramp is slower than we hoped but nothing is blocking the company from initial production.

17:21 CT – Another question is asked, this time about how FSD Unsupervised will compete against Waymo’s offering, especially regarding pricing, geofencing and regulatory flexibility.

“The issue with Waymo’s cars is that it cost waayy more money,” Musk joked. He also stated that Teslas cost a quarter or 20% what a Waymo cost, and the company’s vehicles are made in large volume.

Musk predicts 99% market share for robotaxi unless other companies can deploy the same amount of vehicles on the roads as Tesla. “I don’t see anyone being able to compete with Tesla at present,” he stated.

By the end of the year Musk is confident that the Model Y will drive itself all the way to the customer autonomously from the factory.

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17:25 CT – A question about the unboxed method and how that is progressing was also asked. Tesla notes that the company’s unboxed process is progressing. “You’ll see it on tests and roads in the coming months.” Tesla is also focused on improving the method, like marrying sub-assembly areas together. “This is a revolutionary production system,” Musk noted.

When describing the Cybercab line, Musk stated that “it will ultimately achieve a cycle time of 5 seconds or less.” So far, Tesla is fastest at 33 seconds in Giga Shanghai.

17:29 CT – A question about tariffs and political biases was asked. The executives noted that Tesla is very localized already. Localization for Tesla is 85% in North America and 95% in China. “We’re ridiculously vertically integrated,” Musk stated.

Tesla makes lithium, cathode and cells. Only thing left is the anode. Musk also stated that Tesla’s in-house cells are the most competitive.

17:34 CT – A question was asked if Tesla has battery supply constraints. Tesla executives noted that while tariffs pose a challenge, Tesla is prepared to face it. Tesla is also not battery constrained for vehicles.

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17:36 CT – Another question was asked, this one about “brand damage.” Executives highlighted that Q1 was all about the new Model Y changeover, and the company is still dominating its segments. “Tesla is not immune to the macro demand for cars,” executives noted.

17:39 CT – A question is asked about Optimus’ production line. Musk noted that Optimus is still in development, so most of its production will be at the end of the year. He also noted that most things for Optimus production is new, so it’s ramp has its challenges.

Musk noted that Optimus is affected by the Trump administration’s tariffs against China since the humanoid robot uses robots from the country. Elon Musk also reiterated the idea that Tesla will produce 5,000 Optimus robots this year.

17:40 CT – Analyst questions begin. Pierre Ferragu of New Street Research discussed the market share of Tesla’s cars. Musk noted that “the reality is in the future most people aren’t going to buy cars.” The CEO recalled that when the iPhone came out, veteran phone makers like Nokia opted to continue making legacy products. Consumers, however, wanted the most intelligent product available.

17:43 CT – Emmanuel Rosner from Wolfe asked about the FSD and its required number of human interventions. What still needs to happen for FSD to be Unsupervised? Tesla noted that it is aware of aware of the interventions happening in public FSD, and the robotaxi service rolling out in a couple of months will be focused on key areas. “We really working through a long tail of unusual interventions,” Tesla executives noted.

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When asked if Tesla will need remote operators, Tesla noted that the robotaxi service in Austin will use use them, but only if absolutely needed.

17:46 CT – Edison from Deutsche Bank asked how Optimus’ supply chain will look like. Musk noted that Tesla is focused on localization, especially considering geopolitical uncertainty. The analyst followed up with the number of robotaxis in Austin in June. Musk noted that Day 1, there will probably be 10 cars to observe.

17:49 CT – A Cannaccord analyst asked about FSD pricing. Tesla executives noted that people who bought FSD typically believe that FSD is too cheap, especially its monthly subscription. Granted, FSD is insistent that drivers pay attention to the road, which affects the pricing. But when FSD is already fully unsupervised, that monthly fee will feel very affordable.

When asked about the Indian market, Tesla explained that India is a very hard market because of its taxes.

17:53 CT – Colin Langan from Wells Fargo asked about Tesla’s vision based approach and how the company plans to get around issues like sun glare and dust. Musk noted that Tesla uses Direct Photon Counting to see clearly through fog, dust, and sun glare. With this, Teslas can drive directly facing the sun or in extremely dark environments.

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The analyst asked if the affordable cars will just be a cheaper Model Y. In response, Lars Moravy noted that Tesla is using its existing lines, limiting the design of the cheaper model. The new cars will depend on existing lines, so least their form factor will be familiar.

17:57 CT – Adam Jonas of Morgan Stanley asked about the Trump tariffs. Musk highlighted that he is just one of many advisers, and he does not make decisions. “I am an advocate for predictive tariff structures,” Musk noted.

As a follow up, Jonas asked if Musk believes the US or China is ahead in the development of AI humanoids and drones. Musk laughed and noted that it’s obvious which one is ahead in drones. America sadly cannot manufacture its own drones, and China holds a notable amount of the supply chain. Musk highlighted that US should not depend so much on China to make drones.

He noted that Tesla and SpaceX will be at the top of companies’ rankings, but he is apprehensive that ranks 1 through 10 will all be Chinese companies.

18:02 CT – And that wraps up Tesla’s Q1 Company Update and earnings call! Tesla really answered a lot of questions in this call, making it one of the longest Q&A sessions to date.

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With that, till the next time, everyone!

Tesla’s livestream of its Q1 2025 Company Update and earnings call can be viewed below.

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