Tesla: Challenges Remain Despite Improving Narrative


  • Q1 2024 earnings missed expectations, with revenues facing headwinds from deliveries and lower ASPs, while free cash flows missed by a significant margin.
  • While positive that Tesla is bringing forward the launch of new models, this remains ambiguous, especially on the development of the true Model 2.
  • Full self-driving, or FSD, is no longer constrained by infrastructure, FSD Version 12 seems to have positive feedback so far.
  • While Tesla is currently in conversations with one major automaker about licensing FSD, a deal is likely not imminent.
  • While Tesla shares rallied on media reports about Tesla having received conditional approval to deploy FSD in China, the details of this are not exactly clear yet.

A car made of leaves with an exhaust trail of leaves

Richard Drury

Tesla, Inc. (NASDAQ:TSLA) rallied more than 30% following earnings on hopes about its full self-drive, or FSD, new model launches, and more, but has since seen share price come down after the optimism faded away.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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