Tesla CEO Elon Musk is all in on AI powering his electric vehicle company, despite layoffs, a revenue drop and a recall on the new Cybertruck electric pickup, as discussed during Tuesday’s first quarter earnings call.
The number of Tesla vehicles delivered dropped 8.5% in the first quarter with revenue coming in at $21.30 billion, down from $25.17 billion the previous quarter. Gross profit was down 18%. Over the weekend, Tesla cut prices on its Model Y SUV and original Model S and X EVs by thousands of dollars.
Musk hinted at more affordable Tesla EVs by an earlier-than-anticipated early 2025 timeline during the call, but redirected attention toward autonomous features and services. There wasn’t specific mention of the long-rumored Tesla Model 2, a hopeful $25,000 electric sedan. But Musk’s robotaxi service, which he called “Cybercab,” was highlighted.
He noted, “The way to think of Tesla is almost entirely thinking about autonomy.”
For Jessica Caldwell, head of insights at car shopping platform Edmunds, it’s clear: “Autonomy is now the focus at Tesla.” In a phone call after the earnings call, she noted Musk “actively didn’t want to discuss product plans.” She said it was disappointing the company pushed out sharing details on what a lower-priced Tesla could look like.
Despite the reticence, some future product tidbits did emerge from the earnings report and investor call.
Tesla Model 3 Performance Revealed
A few hours before the earnings call, the Model 3 Performance version was announced on Musk’s X social media site. In a post, the 510-horsepower EV was reintroduced after its initial introduction in 2018. It offers 163 mph top speed and a zero-to-60 mph time of 2.9 seconds.
The new version is available to order on the Tesla website for $52,990 with 296-mile range. The base rear-wheel drive Model 3 starts at $38,990 with 272-mile range.
The new variant features backside badging reminiscent of the new Toyota Prius with Tesla spelled out along with new interior features like sports seats and an aerodynamic exterior design.
Musk assured he would discuss his goal of getting the “most affordable cars to customers as fast as possible” at the Aug. 8 event.
‘Not Only Electric, But Also Autonomous’
Musk’s energy was mostly directed to his EVs’ autonomous capabilities rather than volume production, which he claimed should be able to reach 3 million vehicles. He spoke about a robotaxi product called “Cybercab” and Full Self-Driving capable software. “We’re putting the actual ‘auto’ in ‘automobile,’” he joked.
Over the weekend, Tesla’s Full Self-Driving Capability package dropped in price. The monthly subscription is now $99 per month (previously $199) and all new vehicle purchases include a free one-month trial of the software that autosteers on city streets and stops and starts at traffic lights and stop signs. Full access is now $8,000, down from $12,000. The Enhanced Autopilot system is no longer available.
In the earnings report, a mock-up of Tesla’s own ride-hailing service was shown. It would be integrated into the Tesla app. Musk explained Tesla would operate the fleet and function as a combination of “Airbnb and Uber” for ride-hailing.
The report noted, “The future is not only electric, but also autonomous.”
More about its robotaxi business will be discussed at the Aug. 8 event.
Opening Up Supercharging
Briefly noted in the earnings report, Tesla listed the number of Supercharger stations where are up 26% with 57,579 connectors available. For the first time this quarter, the charging network opened up to non-Tesla vehicles in the U.S.
The report included a photo of a Tesla Supercharger station with a GMC Hummer EV, Ford Mustang Mach-E and Rivian R1T parked alongside a Tesla Cybertruck .