Tesla, performance thunderstorm, said that it will launch more affordable models, and the stock price rose sharply after hours!

Securities Times E Company

2024-04-24 08:19Published on the official account of "E Company" under Guangdong Securities Times

On April 23, local time, Tesla announced its financial report for the first quarter of fiscal year 2024, achieving revenue of $21.301 billion, down 9% year-on-year, and net profit attributable to Tesla's ordinary shareholders of $1.129 billion, down 55% year-on-year.

As of press time, Tesla's latest stock price is $144.61 per share, and the stock price has fallen by 41.8% since the beginning of this year.

Much lower than expected

The results were well below expectations, after analysts had expected Tesla's first-quarter net profit of $1.81 billion.

In addition, Tesla's free cash flow in the first quarter was -$2.53 billion, also below analysts' expectations of positive $653.6 million, and gross margin was 17.4%, down 199 basis points.

Earlier this month, Tesla announced that vehicle deliveries in the first quarter of 2024 fell 20.1% quarter-on-quarter to less than 387,000 units. This is Tesla's worst quarterly performance since 2022.

Musk said on the call that the company plans to start production of the new model "in early 2025, if not later this year," after it was expected to begin in the second half of 2025.

Musk also said that by the end of this year, Tesla will have 85,000 Nvidia H100GPU to train artificial intelligence. After discussing the operational challenges of the first quarter, including the disruption of the Red Sea supply chain, Musk said at the conference, "We think the second quarter will be much better." ”

A more affordable model will be introduced

After the results were announced, Tesla said it would accelerate the launch of more affordable models and accelerate the launch of new models, but it expects sales growth in 2024 to be "significantly lower" than in 2023.

At the same time, Tesla's official website in the United States shows that the company has launched a new high-performance version of its compact sedan Model 3 in the United States, priced at $52,990. Musk claimed that the Model 3 was faster than the Porsche 911.

After hours, Tesla stopped falling and rose more than 12.63%.

Musk's salary was "soul tortured"

Previously, Tesla proposed to re-vote for CEO Elon Musk's "sky-high" compensation package at the annual meeting of shareholders in June. Previously, Musk's compensation package was declared invalid by the U.S. District Court.

Tesla's board of directors claims that a special committee will be set up to evaluate Musk's compensation package, which will be reviewed by independent director Kathleen Wilson-Thompson. The board said in a filing that shareholders need to reauthorize Musk's compensation bill to incentivize Musk's leadership of Tesla. Leo Koguan, Tesla's third-largest individual shareholder, has said he would vote against it.

Another small investor with 8,200 shares wondered: Why does Tesla's board of directors think that despite the decline in deliveries, the decline in the stock price, the intensification of competition in the Chinese market, the lack of artificial intelligence innovation, and the court ruling that the pay is too high, Musk still deserves to restore his "sky-high" executive compensation?

More than 6,000 layoffs have been submitted

Tesla announced ahead of its first-quarter results that it would lay off 6,020 jobs in Texas and California.

Under U.S. labor law, companies with 100 or more employees must give 60 days' notice when planning a shutdown or mass layoffs.

Tesla's Worker Adjustment and Retraining Notification Act, filed with Texas and California, shows that the company will lay off 3,332 employees in California and 2,688 in Texas starting June 14.

Previously, Tesla announced that it would lay off more than 10% of its global workforce, and there were even reports that "Musk once intended to lay off 20% of the company's workforce".

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