Tesla's Q1 2024 Deliveries Disappoint, Shift to AI and Energy

Farzad Mesbahi, Tesla -

Tesla's Q1 2024 Deliveries Disappoint, Shift to AI and Energy

Tesla's Q1 2024 deliveries were lower than expected, but the company is shifting its focus to AI and self-driving technology, energy products, and subscription services, indicating a shift from being just a car company to a broader technology company

Questions to inspire discussion

  • What were Tesla's Q1 2024 deliveries like?

    Tesla reported lower than expected production and deliveries for Q1 2024, with a significant decrease compared to the previous quarter and the first time in its history that it sold less in Q1 than in previous years.

  • How is Tesla shifting its focus?

    Tesla is shifting its focus to AI and self-driving technology, energy products, and subscription services, indicating a shift from being just a car company to a broader technology company.

  • What impact did Byd's sales have on Tesla?

    Byd, previously the largest EV manufacturer, saw a significant drop in sales in Q1 2024, handing the top EV seller title back to Tesla, with a 47% drop in sales compared to Tesla's 21%.

  • Why is Tesla focusing on software?

    Tesla's focus on promoting Full Self Driving and the excitement around it is impacting their Q1 deliveries, leading to a shift in perception from a car company to an AI company.

  • What is Tesla's future focus?

    Tesla is going through a transformation to become more than just a car company, with the magic lying in the ability for the car to drive itself safely without the need for attention from the driver.

 

Key Insights

  • 📊 This is the first time in at least the last 8 years, but probably in the history of Tesla, where Tesla has reported a lower Q1 versus the previous year's Q1.
  • 🚗 Tesla reclaimed the top EV seller title from Byd after Q1 sales decline, selling about 300,000 EVs in the first quarter.
  • 🚗 Despite Tesla's bad numbers, other automakers are also struggling, with potential factors including interest rates, softening demand, and broader market issues.
  • 🚗 Requiring FSD demos for every prospective Tesla buyer in North America dramatically lowers sales to the customers, potentially impacting the Q1 deliveries.
  • 🔋 Tesla's deployment of 4,000 megawatt hours of energy storage products in q1 indicates a potential significant growth in that part of the business.
  • 🚗 Tesla seems to be prioritizing Full Self Driving (FSD) over increasing car sales, indicating a shift towards being seen as an AI company rather than just a car company.
  • 💰 Tesla's shift towards generating revenue from software perspective rather than just selling cars could be a game-changer for the company's future profitability.
  • 📈 The upcoming earnings report is expected to focus less on quarterly vehicle numbers and more on their energy business and the future release of a compact car.

 

#Tesla #Financials #2024Q1 

X Mentions: @faryzness 

Clips

  • 00:00 📉 Tesla's Q1 2024 deliveries were lower than expected, marking the first time in its history that it sold less in Q1 than in previous years, amidst a challenging auto market.
    • Tesla reported lower than expected production and deliveries for Q1 2024, with a significant decrease compared to the previous quarter and the first time in its history that it sold less in Q1 than in previous years.
    • Tesla's Q1 2024 deliveries were not good, and it's important to consider the context of the overall auto market.
  • 01:46 📉 Byd's Q1 2024 sales dropped 47% in China, impacting Tesla's sales, while GM's retail sales increased by 6%.
    • Byd, previously the largest EV manufacturer, saw a significant drop in sales in Q1 2024, handing the top EV seller title back to Tesla, with a 47% drop in sales compared to Tesla's 21%.
    • Byd's sales in China are down 47% due to the rough Chinese economy, impacting Tesla's sales in China, while GM's retail sales are up 6%.
  • 03:23 📉 Quarter over quarter sales for GM are down 1.5%, with significant price decreases for GM brands, indicating broader market struggles.
    • 04:52 🚗 Tesla required FSD demos for every prospective buyer in North America, which dramatically lowered sales, leading to a missed number against Wall Street expectations.
      • 06:09 🚗 Tesla's Q1 2024 deliveries may impact earnings due to lower Model 3 and Y sales, but the company is focusing on future growth with full self-driving software and energy storage products.
        • Tesla is focusing on the future of their company with the development of full self-driving software and has also seen significant growth in their energy storage products.
        • Tesla's Q1 2024 deliveries may have a worse impact on earnings than expected due to the smaller share of Model 3 and Y compared to the Cybertruck, which is a new product that may result in lower margins.
      • 07:47 🚗 Tesla's Q1 2024 deliveries suffered due to focus on Full Self Driving, shifting perception from car to AI company.
        • Tesla's focus on promoting Full Self Driving and the excitement around it is impacting their Q1 deliveries, leading to a shift in perception from a car company to an AI company.
        • Tesla's Q1 2024 deliveries were not as good as they could have been, leading the company to focus on software instead of forcing sales.
      • 09:33 🚗 Tesla's Q1 deliveries were poor, but the company's focus on generating revenue from full self-driving subscriptions and transforming into more than just a car company may outweigh the delivery numbers.
        • Tesla's poor Q1 deliveries may not matter if the company can generate revenue from a software perspective by leveraging a fleet of millions of cars for monthly income from full self-driving subscriptions.
        • Tesla is going through a transformation to become more than just a car company, with the magic lying in the ability for the car to drive itself safely without the need for attention from the driver.
      • 10:59 🚗 Tesla shifting focus to AI and self-driving, less emphasis on quarterly vehicle numbers, preparing to launch compact car and grow energy business, asking for feedback on software update.
        • Tesla is shifting its focus from being a car company to an AI company, with an emphasis on self-driving technology and software, and less on quarterly vehicle numbers, as they prepare to launch a compact car and grow their energy business.
        • Tesla is working on a software update and asks for feedback in the comments. 

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      Duration: 0:12:31

      Publication Date: 2024-04-02T21:40:19Z

      WatchUrl: https://www.youtube.com/watch?v=xlxKd_2_wQo

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