Tesla investors are bracing themselves for what could be disappointing financial results for the first quarter as CEO Elon Musk shifts his focus towards autonomy. Despite a 43% drop in share price since the beginning of the year, Tesla shares rose more than 2% ahead of earnings, offering a glimmer of hope in an otherwise downward trend.
Musk’s renewed emphasis on automated driving includes selling more customers on the Full Self-Driving (FSD) system and the ambitious goal of launching a robotaxi. Tesla recently slashed the price of its FSD system to $8,000 and the monthly subscription to $99, signaling a push to collect more data for autonomous driving technology.
However, these efforts come at a cost as Tesla faces narrowing profits and recently laid off 10% of its staff to reduce costs. Musk’s decision to pause the development of a $25,000 electric vehicle in favor of a robotaxi caught many by surprise, reflecting a new focus within the company.
As Tesla prepares to report its first-quarter earnings, analysts predict lower profits due to decreased deliveries and price cuts. The company delivered 386,810 vehicles in the first quarter, down 20% from the previous quarter and marking the first year-over-year drop in sales in three years.
With Musk’s unconventional strategies and the company’s shifting priorities, investors are eager to see how Tesla plans to navigate the challenges ahead and maintain its position as a leader in the electric vehicle market. The upcoming earnings call is expected to provide insight into Tesla’s financial performance and its future direction in the rapidly evolving automotive industry.