Net profit plummeted by 55%, Tesla urgently enlarged the move! It was just announced that more than 10,000 people would be laid off, and Musk: Cheap models will be launched next year, and robots will be sold

National Business Daily

2024-04-24 12:52Published on the official account of Sichuan Daily Economic News

Tesla's performance has "exploded"!

Tesla's financial report for the first quarter of fiscal year 2024 released after market hours on Tuesday local time showed that revenue fell 9% year-on-year in the quarter, the largest decline in revenue in 12 years, and net profit fell sharply by 55% year-on-year, and all key indicators of the financial report were lower than expected.

It is worth noting that Tesla CEO Elon Musk said that he would accelerate the launch of cheaper affordable models, and the stock price soared by more than 13% after hours. Since the beginning of this year, Tesla's share price has fallen by more than 40%, and its total market value has evaporated by more than 320 billion US dollars (about 2.3 trillion yuan).

Tesla's performance has changed its face

All key indicators were below expectations

According to the financial report, Tesla's revenue in the first quarter fell 9% year-on-year to $21.3 billion, lower than the market expectation of $22.3 billion, which is not only the first year-on-year decline in nearly four years since the new crown epidemic disrupted operations in the second quarter of 2020, but also the largest decline since 2012, down more than 15% from $25.17 billion in the fourth quarter of last year, mainly due to the slowdown in global demand for electric vehicles.

Negative free cash flow of $2.5 billion in the first quarter resulted in a sequential decrease in cash and its equivalents and investments of $2.2 billion at the end of the quarter, primarily due to a $2.7 billion increase in inventory and a $1.0 billion capital expenditure on AI infrastructure, which will continue to increase core AI infrastructure capacity in the coming months.

At the shareholder meeting, Tesla reiterated its pessimistic outlook for 2024 and told investors that "the sales growth rate is likely to be significantly lower than the growth rate in 2023."

Compared to the same period last year, revenue from Tesla's energy division increased 7% to $1.64 billion, while service and other revenue increased 25% to $2.29 billion.

EV sales growth is slowing, and Tesla and its main rivals have been slashing EV prices on and off for months to spur demand. Tesla's gross profit plunged 18% in the first quarter, in part due to price cuts at the beginning of the year. Net profit fell sharply by 55% year-on-year.

Tesla said the total sales include revenue from early sales of its advanced driver assistance system, which is dubbed the Full Self-Driving (FSD) option. A feature called Autopark was released in North America, enabling the company to recognize deferred revenue.

Chris Redl, an automotive analyst at Siena Capital, estimates that Tesla received up to $700 million in deferred revenue from FSD this quarter. Excluding regulatory credit, this equates to about 4.3% of Tesla's vehicle revenue.

Tesla began a massive restructuring this month, with two executives, Drew Baglino and Rohan Patel, resigning. Musk said in a company-wide memo last week that Tesla would lay off more than 10% of its workforce, which would involve at least 14,000 people.

Tesla China launched "0 down payment" car purchase

Elon Musk: Cheap models will be launched next year

After the performance "thunder", Tesla urgently amplified its moves.

On the morning of April 24, Tesla's official Weibo announced that it would launch a 0 down payment campaign, and the applicable models are Model 3 and Model Y.

Just a few days ago, Tesla announced a price cut. On April 21, Tesla's official website in China showed that the price of the new Model 3 version dropped to 231,900 yuan, a decrease of 5.7%; The price of the new Model 3 Long Range was reduced to CNY 271,900, a decrease of 4.9%. The price of the Model Y has been reduced to RMB 249,900, the price of the Model Y Long Range has been reduced to RMB 290,900, and the price of the Model Y Performance has been reduced to RMB 354,900. The price of the Model S has been reduced to 684,900 yuan, and the price of the Model S PLAID version has been reduced to 814,900 yuan. The price of the Model X was reduced to 724,900 yuan, and the price of the Model X PLAID version was reduced to 824,900 yuan. The Model Y, S, and X models in the United States have also been reduced in price across the board.

It is worth noting that during Tesla's earnings call, Musk made it clear that a more competitively priced budget model, the Model 2, as previously reported, is planned to be launched on the market in early 2025. Musk revealed that the new model will be manufactured from the existing production line, without the need for a new factory, and does not rule out the possibility of being put on the market earlier.

In addition, Musk said that by the end of the year, Tesla will have 85,000 Nvidia H100 GPUs for training artificial intelligence. Musk said that the humanoid robot Optimus may be sold by the end of 2025, and by the end of this year, the Optimus humanoid robot will have the ability to complete simple factory tasks.

According to some analysts, Tesla invested $1 billion in AI computing in the first three months of this year, making it more of an AI company than a car company.

In addition, in the early morning of April 24, Beijing time, after market rumors, explosive photos and parameter spoilers in the past few months, Tesla finally released the new Model 3 high-performance version on its official website in the United States, and began to accept reservations at the same time.

Compared to the previous-generation Model 3 Performance Edition, the new version has 32% more peak power and 16% more peak torque, while reducing drag by 5%. Like its predecessor, the new Performance version is equipped with larger brake calipers to control the more powerful car.

According to Tesla's official website, the new Model 3 high-performance version is priced at 52,990 US dollars (about 383,900 yuan), and the car has a range of 296 miles (about 476 kilometers). According to the official website of the United States, it is decided now, and the car will be picked up in about 5-6 months.

Although the focus of American netizens at the beginning was the range of this car, it was quickly overshadowed by the heated discussion caused by the price - American netizens were surprised to find that due to the current electric vehicle subsidy policy in the United States, the new high-performance version is cheaper than the standard long-range version!

According to the original pricing, the high-performance version of the Model 3 ($52,990) is more than $5,000 more than the long-range version ($47,740), but because the former can get the full $7,500 tax credit for car purchases, and the latter does not receive subsidies now, the high-performance version is $2,000 cheaper.

Musk also reluctantly said that the situation is now far more evolved than the possibility of changing the huge supply chain and production system. At the same time, he also "added confusion" to netizens, saying that the preferential policy for electric vehicles in the United States is applicable to the leased Model 3 long-range version, so the price of renting a long-range version is still lower than that of the high-performance version.

Edit|Duan Lian covers the source source

Proofreading|Lu Xiangyong

The daily economic news is synthesized from CCTV Finance, Tesla's financial report, @特斯拉, Tesla's official website, public information, etc

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