Some of Tesla's investors seem to have been hypnotized by Elon Musk's optimistic speech during the financial results. However, nothing tangible has been put on the table. The editorial of the Watt Else newsletter of April 25 returns to the subject.
The last few weeks have been particularly chaotic for Tesla. The company has suffered: sluggish results, falling sales and massive layoffs. We must also add to this mix the doubts raised by the changes in strategy. All this ended up creating a fairly explosive cocktail when it came time to report to investors at the quarterly results conference, which was held on April 23.
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Nothing insurmountable for Tesla, which has already experienced much worse in its history. The company has always been resilient, and that doesn't seem to be changing any time soon. While I thought Elon Musk was cornered, he completely knew how to turn the situation around in his favor in an hour. Great feat.
Glass half empty or half full?
While investors see the glass half empty, Elon Musk oversells the glass half full. Well aware that the year is likely to be more complicated than expected in terms of sales, Elon Musk responds with aplomb: “ I think sales will be higher this year than last year. » The answer is surprising as other manufacturers are turning to a safe haven: the hybrid car, to sit back while it passes. Tesla unfortunately has no choice but to weather the storm.
No more Model 2 at €25,000? Tesla is releasing more affordable future models that will be based on current platforms. This limits risk-taking and avoids heavy unnecessary expenses. In the same spirit, the manufacturing of 4680 batteries, the Cybertruck and the Semi finally seems to be emerging from its lethargy. All these topics of tension over the last few months should turn into gold by the end of the year, according to the business leader and his team.
Tesla's future will be autonomous, or it won't be
Tesla has indeed taken a new course: that of becoming the leader in autonomous cars, in addition to being the leader in electric cars. Boosted by the progress made by its Full Self Driving (FSD) autonomous driving system in recent weeks, Elon Musk is basing Tesla's entire future on this technology. He is convinced he has found the perfect solution.
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In addition to being sold or rented to Tesla drivers, the FSD will be marketed under license to other manufacturers, Elon Musk does not doubt it for a moment. But it is above all the robotaxi which concentrates the attention of the business manager. Tesla wants to set up a huge fleet of “Cyber cabs” operated by the brand. Concretely, Tesla only sees possible sources of income in this solution. No limits, no defects, no additional infrastructure costs will stop Tesla on this issue. Elon Musk said: “ Even if I get kidnapped by aliens, Tesla would solve the question of autonomous driving. »
Elon put stars in their eyes
For once, the financial results conference was well prepared. This is particularly evident in the responses provided. While usually the business leader hesitates, stammers and gets tripped up, this April 23, he was concise, incisive and didn't really leave room for approximation.
The opposite would probably have been a real disaster for the stock market, which miraculously seems to be rebounding with vigor. Investors are regaining confidence in the brand's message, even if all this is probably just window dressing. They are as if bewitched by optimism.
Even the announcement of the departure of an nth vice-president of Tesla (Martin Vechia – VP investor relations), leaving the company after 7 years, was received with kindness, and not with concern in this context. However, it is proof that everything is not as rosy as it seems in the wonderful world of Tesla.