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    Tesla Investors Await Update on Affordable Models and Robotaxi Service

    autoexpresscarBy No Comments2 Mins Read
    Tesla electric vehicles are lined up at a dealership in Durango, northern Spain, on October 30, 2023.
    Tesla investors are anxiously awaiting the company’s update on operations, scheduled to take place after market close on Tuesday. The electric vehicle maker is expected to provide details on its plans for a cheaper car and a robotaxi service, which have been highly anticipated by investors. Analysts expect Tesla’s automotive gross margin to have fallen to 11.8% in the first quarter, down from 13.6% in the fourth quarter. The company’s stock has nearly halved from its December peak, and some investors have taken a sour view of the once Wall Street darling. Tesla has faced protests, vandalism, and consumer calls for boycotts in several markets, and sales in China and California have fallen sharply. Despite efforts to boost sales through incentives like free charging and Full Self-Driving features, analysts expect a second straight annual decline in Tesla deliveries in 2025.

    Key Expectations from Tesla’s Update

    • Details on affordable models
    • Plans for robotaxi service
    • Insights into Elon Musk’s role and management focus

      Recent Challenges

      Tesla has faced several challenges recently, including:

    • A 13% decline in deliveries in the January-March period
    • Increased competition from Chinese rivals
    • Negative impact of Elon Musk’s political actions on the brand
    • Tariff tensions affecting component imports from China

      Financial Performance

      Revenue is expected to have been flat at $21.35 billion compared to the previous year, supported by gains in regulatory credits and growth in Tesla’s energy storage business. The company’s key automotive gross margin is expected to have decreased due to prioritization of volume growth over profitability.

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