Apr 23, 2024 - 10:59
By foxbusiness.com

Tesla's day of reckoning as first-quarter earnings set to be released

Tesla is set to release its first-quarter earnings on Tuesday after the market closes – and the electric vehicle (EV) maker faces a reckoning from investors after a big sales miss.

The company saw vehicle deliveries decline in the first quarter for the first time in nearly four years – falling well short of analysts' expectations amid a price war in China, where domestically made EVs like those from BYD have taken market share.

Tesla has responded with price cuts for its most popular cars as well as its Full Self-Drive (FSD) software meant to reinvigorate customer demand.

Tesla also announced last week that it will lay off about 10% of its global workforce in a bid to control costs. Its stock has fallen over 42% year to date as of Monday's close amid the competitive challenges and financial headwinds it faces, which have left the EV maker at a crossroads.

TESLA'S WEAK FIRST-QUARTER DELIVERIES AN 'UNMITIGATED DISASTER' FOR MUSK

CEO Elon Musk will look to reassure investors about the direction of Tesla, the world's most valuable automaker by market capitalization, during Tuesday's earnings call. Here's a look at some of the topics that may be a focus during the call:

ROBOTAXI

In early April, Musk posted on X, formerly Twitter, that Tesla will unveil a robotaxi on Aug. 8 and later added that going «balls to the wall» on autonomous vehicles was a «blindingly obvious» move.

Musk's robotaxi push comes at a pivotal moment for Tesla and amid legal and regulatory challenges in the pursuit of fully autonomous vehicles.

TESLA AUTOPILOT, SIMILAR AUTOMATED DRIVING SYSTEMS RATED 'POOR' BY SAFETY GROUP

Ticker Security Last Change Change %TSLA TESLA INC. 142.05 -5.00 -3.40%

Tesla has long touted its Autopilot and Full Self-Driving systems, though they fall short of full autonomy and require drivers' active supervision. The company has also faced lawsuits and investigations into those technologies.

Robotaxi being thrust to the forefront of Tesla's planning – potentially at the expense of a long-awaited, low-cost EV option – will likely make it a topic worth paying attention to during Tuesday's earnings call.

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