Tesla Inc. missed earnings expectations on both revenues and earnings for a third consecutive quarter. However, the company announced that they are accelerating the launch of more affordable cars to boost sales and address cooling demand for EVs. The stock was up more than 10% in after-hours trading but still down 42% overall in 2024.
Tesla’s CEO Elon Musk reiterated on Tuesday that growth in 2024 might be "notably lower" than it was the previous year. Executives have previously described Tesla as being between two growth waves: the first driven by its popular Model Y crossover and Model 3 car, and the next to come with the launch of a new generation of vehicles.
Cathie Wood’s Ark Invest continued its aggressive buying of Tesla Incshares, despite the electric vehicle giant’s earnings miss. This move follows Ark Invest’s acquisition of over $17 million in Tesla shares the previous day, ahead of Q1 results announcement.
Much of Tesla's earnings call was focused on the company's commitment to make fully autonomous cars. "If somebody doesn't believe Tesla is going to solve autonomy, I think they should not be an investor in the company," Musk said. Musk also revealed plans for a robotaxi and a ride-hailing network, saying Tesla would own some cars for the fleet and allow owners to deploy their vehicles for the service, comparing it to Airbnb.
Lars Moravy, Vice President of Vehicle Engineering, also revealed the plans for the Tesla Semi. The Tesla Semi is a fully electric semi-truck with advanced safety features, a long range, and a spacious interior designed for maximum visibility. Moravy said that the first “external customers” are expected in 2026.
In summary, Tesla is in a more uncertain place than it has been in years, with declining vehicle sales, cooling demand for EVs across the industry and Musk's placing greater emphasis on developing fully autonomous cars, a project that many investors perceive as risky.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
