Tesla Q1 2024 Earnings: Profitability, AI, Energy Storage & More

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Tesla Q1 2024 Earnings: Profitability, AI, Energy Storage & More

Tesla's Q1 2024 earnings call highlighted the company's focus on profitability, AI and tech advancements, energy storage, new vehicle releases, and potential partnerships, signaling a shift towards a high-margin software services business model

Questions to inspire discussion

  • What are the highlights of Tesla's Q1 2024 earnings call?

    The earnings call highlighted Tesla's focus on profitability, AI and tech advancements, energy storage, new vehicle releases, and potential partnerships, signaling a shift towards a high-margin software services business model.

  • What are investors interested in regarding Tesla's Q1 earnings?

    Investors are interested in Tesla's profitability, margin, FSD, logistics issues, and energy side of the business, as well as the tone and expectations for the future.

  • What is Tesla's transition focus from hardware to AI?

    Tesla is transitioning from a hardware company to an AI FSD company, with a focus on full self-driving subscriptions and mega pack numbers, while also addressing the impact of inventory and the upcoming June 13th vote.

  • What are the potential surprises in Tesla's Q1 earnings report?

    The speaker is optimistic about Tesla's long-term trajectory, believes that sentiment is at an all-time low, and expects potential surprises in the earnings report, particularly regarding FSD and the first Robo taxi Fleet.

  • What is Elon Musk's outlook on Tesla's future?

    Elon Musk discussed Tesla's Q1 earnings, highlighting optimism for Q2, plans for cheaper vehicles, potential production start in 2024, and conversations with major automakers for licensing FSD.

 

 

Key Insights

  • 🚗 The overarching narrative boils down to the expectations for FSD and the justification for pushing hard for autonomy.
  • 🚗 The new vehicles will include more affordable models that will utilize aspects of the Next Generation platform as well as aspects of their current platform, potentially leading to more than 50% growth over the 2023 production.
  • 🚗 Elon Musk believes it is reckless and dangerous to not enable autonomy, and any regulators who want to stop that will be killing people.
  • 🚗 "I think if you've got at scale a statistically significant amount of data that shows conclusively that the autonomous car has let's say half the accident rate of a human driven car. I think that's difficult to ignore because at that point the stopping autonomy means killing people."
  • 🚀 "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, it might be the biggest asset value appreciation in history when that day happens."
  • 🚗 "If you value Tesla as just an auto company, you would just have the fundamentally wrong framework."
  • 💻 "If we've got millions and then tens of millions of vehicles out there where the computers are idle most of the time, we might as well have them do something useful."
  • 🚗 Tesla's vision for a vertically integrated Robo taxi fleet could revolutionize the transportation industry and create a new high-margin revenue stream.

 

 

#Tesla #Investment

XMentions: @FutureAzA @Tesla @gfliche @farzyness @herbertong @theJeffLutz @TeslaBoomerMama @FutureAza @R6Alex @HansCNelson @NickGibbsIAG @Rebellionair3 @HeyItsYashu @StephenMarkRyan @HabitatsDigital 

 

Clips 

  • 00:00 📉 Tesla's Q1 2024 earnings expected to be gloomy, but anticipation for a more positive outlook from Elon Musk regarding the company's future as an AI and tech company, with focus on profitability, FSD, logistics, and energy side of the business.
    • Tesla Q1 2024 earnings call is expected to be gloomy due to poor Q1 print, lower delivery numbers, and decreased sales in China, but there is anticipation for a more positive outlook from Elon Musk regarding the company's future as an AI and tech company.
    • Investors are interested in Tesla's profitability, margin, FSD, logistics issues, and energy side of the business, as well as the tone and expectations for the future.
    • Tesla's Q1 earnings may not accurately represent the broader economy, with concerns about inventory, government spending, and supply chain issues, but there is potential for Tesla to come out of this faster than other auto companies due to their quick actions and short supply chain latency.
    • Tesla is transitioning from a hardware company to an AI FSD company, with a focus on full self-driving subscriptions and mega pack numbers, while also addressing the impact of inventory and the upcoming June 13th vote.
    • The speaker is optimistic about Tesla's long-term trajectory, believes that sentiment is at an all-time low, and expects potential surprises in the earnings report, particularly regarding FSD and the first Robo taxi Fleet.
    • The speaker wishes good luck for earnings and will be tuning into the chat, but has to hop off now.
  • 28:35 🚗 Tesla's Q1 2024 earnings call discusses potential surprises in energy and partnerships, with plans to accelerate new vehicle models and ride hailing functionality, leading to positive market response.
    • Elon Musk responded to a post about regulations in Florida for autonomous vehicles, highlighting that the state has passed a law making it wide open for companies to operate with minimal barriers.
    • Tesla Q1 2024 earnings call discusses potential surprises in energy and partnerships, with speculation on Elon Musk's mood and forward-looking statements.
    • Tesla's Q1 2024 earnings report shows a 17.4% gross gap, earnings per share of 45 cents, and plans to accelerate the launch of new vehicle models ahead of schedule.
    • Tesla is working on ride hailing functionality and has surpassed 1.3 billion miles of FSD data, leading to potential new revenue streams and product announcements.
    • Tesla's Q1 2024 earnings show no major surprises, with financials in line with expectations and positive signs for the rest of the year, despite some speculation about the cancellation of a compact car.
    • Tesla is investing in the right places, reducing costs, and planning to launch new models ahead of schedule, leading to more car sales and positive market response.
  • 55:01 🚗 Tesla's Q1 2024 earnings report highlights new vehicle releases, a ride-hailing app, AI advancements, and potential partnerships, with a focus on lowering costs and maximizing production.
    • Tesla's Q1 2024 earnings report discusses the release of multiple new vehicles, the cautious approach to production, the development of a ride-hailing app, and advancements in AI technology.
    • Tesla is discussing the launch of their ride-hailing app and how they plan to get people to download and use it, including potential partnerships with Uber and cost advantages.
    • Tesla is considering integrating their own app and service, potentially partnering with other companies, to maximize utilization and create a seamless user experience for their Robo taxi platform.
    • Tesla is planning to launch new, more affordable vehicle models, possibly a compact car, and there is speculation about the price point and production timeline.
    • Tesla plans to lower the cost of the Model 3 and Model Y by incorporating aspects of the unbox process, potentially increasing production volume without the need for additional production lines, and focusing on the China and Europe markets initially.
    • Tesla may be signaling that the Dojo project is not failing as many thought, which is a big deal.
  • 01:22:47 🚗 Tesla's Q1 2024 earnings call discussed progress in autonomy, potential robo taxi partners, challenges in battery production, and optimism for new products and revenue.
    • Elon Musk discusses the potential partners for robo taxi, the progress of Optimus, and the focus on autonomy and FSD in the first quarter Tesla earnings call.
    • Tesla's Q1 2024 earnings call discussed the challenges of ramping up battery production, the pathway towards regulatory approval for unsupervised FSD, and the relevance of questions regarding autonomy and AI.
    • Legacy automakers may eventually partner with Tesla to license FSC, but it may take time for them to officially announce it.
    • Tesla's Q1 2024 earnings call reflects optimism and positive sentiment, with discussions about new vehicles, network development, and the potential for a revenue-generating Robo taxi network.
    • Tesla is planning to release new products in stages, there are concerns about the company's financials and production progress, and there is anticipation for the upcoming conference call.
    • Tesla's Q1 earnings were around expectations, with negative free cash flow for the first time in a while, but a substantial increase in AI compute processing power, potentially indicating progress with Dojo.
  • 01:59:22 🚗 Tesla Q1 earnings call discusses record profitability in energy storage, challenges in the EV market, focus on autonomy and electric vehicles, and plans for future advancements in vehicle capabilities.
    • Elon Musk and other executives discuss Tesla's Q1 results and business outlook, with a reminder to limit questions to one per person during the Q&A portion.
    • Tesla faced challenges in the EV market, but the team executed well, leading to record profitability in energy storage, and they plan to accelerate the launch of new vehicle models.
    • Tesla is focused on autonomy and electric vehicles, with a decline in auto business revenues, but improvements in margins and energy business, as well as plans to increase efficiency and reduce costs.
    • Tesla expects regulatory approval for unsupervised FSD in the US and other countries, with a fleet of millions of cars providing data for safety validation and potential for distributed inference computing.
    • Tesla uses a combination of real-world data, simulation systems, and feedback loops to continuously improve the safety and quality of their vehicles, with plans for significant advancements in the capabilities of their cars in the near future.
    • Scaling loss can occur in model size, data, training compute, and architecture, but by combining these factors, better performance can be achieved through scaling.
  • 02:24:42 🚗 Tesla is updating their vehicle lineup, focusing on AI and autonomy, making headcount reductions, and planning to accelerate the launch of FSD in new markets to ensure future growth and success.
    • Tesla is predicting future performance based on past trends, updating their vehicle lineup to accelerate the launch of low-cost vehicles, and working on ramping up production for the Cybertruck and semi, with Elon Musk expressing commitment to Tesla's prosperity.
    • Elon Musk discusses the future of Tesla, emphasizing the importance of AI and autonomy in their vehicles, and expresses confidence in the company's ability to achieve autonomy even if he were to disappear.
    • The company is making headcount reductions and reorganizing for future growth to address inefficiencies and ensure success.
    • Tesla is confident in their self-driving technology and believes that licensing agreements with other manufacturers will be necessary for survival, with potential deals taking a few years to come to fruition.
    • Tesla is focused on making their cars more affordable and accessible while maintaining profitability through cost reductions and continuous improvement of their products.
    • Tesla plans to accelerate the launch of FSD in new markets, including China, as the end-to-end neural net based autonomy system works well in almost any market and will be released as a supervised autonomy system with country-specific training.
  • 02:50:00 🚗 Tesla faced supply constraints in Q1 2024 but expects Q2 to be better, plans to utilize excess compute in vehicles for other workloads, making progress on 4680 ramp for Cybertruck, working on reducing costs and increasing production capacity for battery cells, and discussing potential production start in 2024 and conversations with major automakers for licensing FSD.
    • Tesla faced supply constraints in Q1 2024, impacting deliveries, but they expect Q2 to be better, and they plan to utilize the excess compute in their vehicles for other workloads.
    • Tesla is utilizing the distributed power and cooling capabilities of its vehicles for scientific computing and is making good progress on the 4680 ramp for the Cybertruck.
    • Tesla is working on reducing costs and increasing production capacity for their battery cells, while also considering the potential impact of market fluctuations and government incentives.
    • Investor relations executive announces departure from Tesla after 7 years, expresses gratitude and praises company's teamwork and progress, while also discussing the company's focus on AI and FSD during the earnings call.
    • Elon Musk discussed Tesla's Q1 earnings, highlighting optimism for Q2, plans for cheaper vehicles, potential production start in 2024, and conversations with major automakers for licensing FSD.
    • Tesla is making a lot of money, considering buybacks to reach 25% control, and discussing the potential for robo taxis and the future of the company.
  • 03:15:57 🚗 Tesla's ability to lower prices and come out with cheaper models while maintaining profitability, progress in autonomy and FSD, potential licensing of FSD to major automakers, and focus on high-profit margin services and AI shift the company towards a high-margin software services business model, despite the stock's reaction.
    • Tesla's ability to lower prices and come out with cheaper models will still be paired with profitability due to their leverage in purchasing batteries at a much cheaper price, and they are the only ones making EVs at scale outside of China.
    • Investors discussed Tesla's progress in autonomy, FSD in China, the new robotaxi, institutional investors' lack of questions, and Elon Musk's future in Tesla.
    • Tesla is discussing the replacement of key personnel, the potential licensing of FSD to major automakers, the development of a humanoid robot, and the opportunity for cloud computing in cars, with a focus on the challenges and benefits of edge computing.
    • Tesla's Q1 2024 earnings call discussed the potential for high-profit margin services, such as Dojo as a service and Robo taxi fleets, which could significantly increase the value of the company's cars and shift the company towards a high-margin software services business model.
    • Elon Musk's positive outlook on Tesla's future, focusing on AI and FSD, along with the announcement of new products and the company's ability to scale its compute capacity, provides reasons for optimism despite the stock's reaction.
    • Tesla is experiencing unprecedented growth and the panel thanks everyone for participating.

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Duration: 3:45:44

Publication Date: 2024-04-23T23:21:16Z

WatchUrl: https://www.youtube.com/watch?v=qLPyO9EkOFI

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