Yahoo Autos Recap: Tesla stock surges despite plunging profits as Musk talks robotaxis and cheaper cars
Tesla reported first-quarter earnings on Tuesday.
Elon Musk talked Tesla's plans for a robotaxi and cheaper EVs.
Shares rallied 10% in after-hours trading as investors shrugged off falling profits.
Tesla reported first-quarter earnings on Tuesday after the closing bell.
The electric-vehicle maker posted first-quarter earnings-per-share that fell short of consensus forecasts, but exceeded estimates for gross margin. Tesla also said it will accelerate production of new models of low-cost vehicles.
Tesla stock climbed more than 10% in volatile late trading shortly after the results. The stock rose 1.8% on Tuesday trading, and but has struggled so far in 2024, falling 42% year-to-date through the close.
During the earnings call, Tesla CEO Elon Musk talked about Tesla's plans to unveil its Robotaxi later this year and the company's efforts to accelerate production of a more affordable line up of EVs.
Tesla’s shares are still up as the call ends
The stock is up more than 10% in after-hours trading as the call draws to a close.
Tesla's head of investor relations, Martin Viecha, announces his departure
Viecha says he's leaving the company after seven years in the role at Tesla.
He's the third executive to depart Tesla in the past week. Drew Baglino, Tesla's senior vice president of powertrain and electrical engineering, announced last week that he'd left the company. Rohan Patel, Tesla's vice president of public policy and business development, also left the company last week.
Musk says battery costs are falling
The number of orders for EV batteries from competing automakers has dropped, Musk says, adding that it seems Tesla's battery suppliers have excess capacity.
Musk says analysts should drive the latest FSD update
Musk says he strongly recommends that anyone who is thinking about the company's stock should test out the latest updates to the Full Self-Driving software.
"It is impossible to understand Tesla if you haven't done this," Musk says.
Musk takes a question about Tesla's price cuts
Musk says he thinks Tesla can stay cash-flow positive even with the potential of future price cuts.
"If you have a great product at a great price, the sales will be excellent," Musk says, adding that the company plans to keep making its cars and prices more competitive.
Analyst asks what 'sacrifices' Tesla is making with recent layoffs
Tesla CFO Vaibhav Taneja says the cuts will make Tesla more resilient.
"Any tree that grows needs pruning," Taneja says.
Musk says the company needs to reorganize for a new phase of growth.
"We're not giving up anything that significant that I'm aware of," Musk says.
Analyst asks if Musk is spread too thin and if he'll still be around in 3 years
Musk says he rarely takes a day off, and Tesla represents the majority of his work.
"I make sure Tesla is very prosperous," Musk says.
Musk says Tesla is in conversations with one major automaker regarding FSD licensing
Tesla has worked with automakers like Ford and GM to license its Supercharger technology in the past.
VP of vehicle engineering Lars Moravy dodges question on timeline of $25,000 EV
Moravy sticks to earlier remarks when asked directly about the cheaper model and its timeline, giving no specifics on a date or price.
Elon takes a question about FSD regulatory approval
"It's helpful that other autonomous car companies have been cutting a path through the regulatory jungle," Musk says.
Musk says he doesn't think there will be "significant regulatory barriers" to Tesla's Full Self-Driving software being approved for use more widely. The driver-assist software currently requires a licensed driver to monitor it.
Eventually, there will be 10 million Tesla robotaxis around the world, he says.
We're already onto questions
Individual investors will kick off things like usual, with the company taking questions from an online form where shareholders can upvote questions to the top of the queue.
CFO addresses layoffs
CFO Vaibhav Taneja says that the company's 10% reduction in overall headcount will save it "in excess of $1 billion on an annual run rate basis."
The earnings call kicks off
Musk, CFO Vaibhav Taneja, and Tesla's head of investor relations Martin Viecha are here to discuss the results.
Tesla takes a dig at hybrid cars
"Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs," the company says in its earnings release. "While positive for our regulatory credits business, we prefer the industry to continue pushing EV adoption, which is in-line with our mission."
Musk has dismissed the wildly popular, and often more affordable segment, in the past. In 2022, he called it a "phase," saying on X that it's "Time to move on from hybrid cars."
Tesla says it’s moving up production plans for cheaper EVs
