Chen Xiaohui, Chief Journalist of Shenzhen Business Daily · Reading and Innovation Client
On April 24th Beijing time, Tesla released its Q1 2024 financial report. Data shows that Tesla achieved a revenue of 21.301 billion US dollars in the first quarter, a year-on-year decrease of 9%; The net profit was 1.129 billion US dollars, a year-on-year decrease of 55%.
Previously, there were market predictions that Tesla's "big exam" in the first quarter would come under pressure, and its operating profit may decrease by 40%. The actual data (a year-on-year decrease of 55%) is even lower than previously predicted. It is reported that this is Tesla's worst performance in 12 years.
Tesla's performance has significantly "shrunk"
Musk: Coped with several unexpected challenges in the first quarter
According to Tesla's Q1 financial report, from a business perspective, the automotive business revenue was $17.378 billion, a year-on-year decrease of 13%; The revenue from energy generation and storage was 1.635 billion US dollars, a year-on-year increase of 7%. In terms of sales, Tesla delivered 386800 vehicles globally in the first quarter, a year-on-year decrease of 8.3% and a month on month decrease of 20.1%.
Previously, institutions predicted that Tesla's global delivery volume in the first quarter would be around 430000 vehicles, but this quarter's performance report was significantly lower than expected.
In fact, such performance markets have long been mentally prepared, and it is not difficult to see from Tesla's recent actions that Tesla and Musk are facing challenges.
For example, adjusting prices multiple times. On April 1st, Tesla announced a price increase of 5000 yuan for the Model Y, which some experts suggest may be a move taken by Tesla to avoid excessive concessions in the price war. However, in less than a month, Tesla brought the price back and announced a price reduction of 14000 yuan for the entire Tesla lineup in the Chinese market.
For example, the "layoff" controversy. On April 15th, Tesla CEO Musk sent a letter to all employees announcing Tesla's global layoffs of over 10%. Based on the current global workforce of approximately 140000 Tesla employees, this means that approximately 14000 Tesla employees will lose their jobs this time.
Regarding the first quarter performance, Musk stated in a earnings conference call that this is related to automakers shifting towards plug-in hybrid models, putting pressure on global electric vehicles.
"Let me briefly summarize that in the first quarter, we faced several unexpected challenges and also launched an upgraded version of the Model 3 at the Fremont factory. As we all know, the global popularity of electric vehicles is under tremendous pressure, and many other car manufacturers are withdrawing their support for electric vehicles and moving towards plug-in hybrid models."
However, Musk remains firmly optimistic about the development of electric vehicles. "But we believe that this is not the right strategy, as electric vehicles will eventually dominate the market."
It is reported that Tesla's Chief Financial Officer, Vaibaf Tania, revealed during the interpretation of the financial report that Tesla is actively adjusting its pricing strategy and providing "highly attractive financing solutions" in car purchase and subscription services, which may help boost demand.
Increase AI spending by $1 billion
Tesla is not just about making cars
In sharp contrast to the sharp decline in profit data in the first quarter, Tesla has invested heavily in the field of artificial intelligence.
According to the financial report, Tesla's artificial intelligence infrastructure capital expenditure in the first quarter was $1 billion; In the first quarter, artificial intelligence training and computing improved by over 130%.
"In fact, we should be seen as an artificial intelligence or robotics company. If you only see Tesla as an automotive company, then fundamentally, your understanding of Tesla is one-sided," Musk said.
Currently, Tesla is enhancing its autonomous driving capabilities based on artificial intelligence. Musk mentioned that Tesla has launched an artificial intelligence based autonomous driving feature, FSD V12, for all vehicles equipped with cameras and inference computers in North America. Starting from Hardware 3, it has now launched approximately 1.8 million vehicles.
"Since the release of FSD, we have traveled over 480 billion kilometers," Musk said. Tesla will deepen the development of FSD to enable cars to drive independently and have high intelligence. "I believe that in the future, all cars will be intelligent. If cars do not have intelligent functions, they will be difficult to establish themselves in the market and no one will buy them. Therefore, the widespread application of FSD is inevitable."
As for robots, Musk also answered questions related to the humanoid robot Optimus. Musk said that Optimus Prime can perform simple tasks, and Tesla will attempt preliminary production this year for internal use. "Optimus Prime is capable of completing simple factory tasks in the laboratory, and we may begin limited production for external customers by the end of next year, with the earliest possible launch by the end of next year," Musk said.
Zhongtai Securities predicts that the humanoid robot industry may enter the first year of small-scale mass production in 2024, and the industrialization progress is expected to exceed expectations. As an area where Chinese manufacturers can deeply participate in the global AI wave, domestic manufacturers have great opportunities for development. Under the influence of the above news, the two leading humanoid robots rose sharply in early trading today, with Topp Group rising nearly 6% and Sanhua Intelligent Control rising more than 5%.
It is worth mentioning that although the electric vehicle market has suffered setbacks, energy storage has reached a historic high. Musk stated that despite facing these challenges, the Tesla team performed exceptionally well in challenging environments, particularly with the deployment of Megapack energy storage reaching a historic high in the first quarter, setting a new profit record for the energy business. "We expect this trend to continue to grow in the coming quarters and years, even at a significantly faster rate than the automotive business."
"0 down payment" can be used to "board" Tesla
New models may be launched early
On April 24th, Tesla launched the "0 yuan season" campaign on its official channel, announcing that customers who order a designated version of the Model 3 in stock can enjoy a "0 down payment" and "discounted interest rate", with daily supply as low as 145 yuan; You can also enjoy "limited time 0 down payment" and "limited time 0 interest" by ordering the current version of Model Y.
As soon as the news came out, netizens expressed that they had gone crazy. Previously, Tesla China announced on April 3 that it would launch a limited time and low interest replacement policy for the Model 3/Y model, and for the first time introduce a "zero interest" installment purchase discount policy.
Since the beginning of this year, under the price war of new energy vehicles, Tesla has also adjusted model prices multiple times. On April 21st, Tesla's official website in China showed that the entire Tesla lineup had a price reduction of 14000 yuan in the Chinese market, with Model 3 starting at 231900 yuan and Model Y starting at 249900 yuan. At present, the starting price of a Model 3 has been reduced to 231900 yuan, and the price difference with the standard version of Xiaomi SU7, which is 215900 yuan, has narrowed to 16000 yuan.
On April 24th, Tesla China launched a new Model 3 high-performance all wheel drive version on its official website, starting at 335900 yuan, with delivery expected to begin in the third quarter.
Regarding whether Tesla will continue to lower prices, Musk stated in the earnings conference call that it is crucial to maintain the rationality of prices and continuously improve affordability. "You must constantly improve your cars, raise prices, and improve production costs, which is what we are doing." Musk said that Tesla's goal is to maintain a balance between product quality and company profitability while lowering prices. Tesla will also consider the purchasing power of consumers and provide purchasing and financing options to alleviate their economic pressure.
It is reported that Tesla will also accelerate the launch of new models. "We have updated our future vehicle lineup and accelerated the launch of new models. As previously mentioned, the models that will start mass production in the second half of 2025 are expected to be moved forward to early 2025," Musk said. These new models, including more affordable models, not only fully integrate the innovative advantages of existing and new platforms, but will also be manufactured on Tesla's existing production lines. "This should be able to increase production capacity to over 3 million vehicles when achieving comprehensive expansion."
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