Elon Musk made some big, exciting promises to Tesla investors in the company's first-quarter earnings on Tuesday – But he said they would not start paying until mid 2026 or later.
In the hours after Tesla reported, the analysts said they were waiting for two things: an expected cheaper car and for Tesla's robotaxi to hit the market.
Tesla's Robotaxi, released in October, is a fully autonomic vehicle that can be hailed with a ride on app sharing like a cab. Tesla has also motivated a cheaper car – without disclosing its model or feature – since 2020.
Tesla survived the expectations for the first quarter, reporting a 71% income collapse and a 9% income collapse. Vehicle sales in particular suffered, with auto revenues in 20% years over the year and vehicle delivery was 13%.
The EV manufacturer has faced protests, boycotts, and attacks in recent months at Musk's work with the White House Doge's office. Musk announced in the call that he was coming back from Doge in May, good news to investors concerned that Tesla was not getting enough billionaire attention.
Tesla's stock jumps almost 5% after time, But it dropped by 41% this year.
Cantor Fitzgerald's analysts led by Andres Sheppard are highlighting the robotaxi and cheaper model on a note following revenues. They added that regulatory approval for full self-driving and Robotaxi remains a major risk for Tesla stock price.
A more affordable model can open the potential Tesla customer base and help the company compete around the world against cheap EVs Chinese.
Thomas Monteiro, an analyst at Investing.com, said, “Tesla has a room for significant improvement.”
“If this is the worst it gets for Tesla, then there should be some reversal for stock once tails, such as the highly awaited model and the Robotaxi, finally hit the market next year,” he said in a note following the income call.
Yun Mei, an EV analyst in China Great Wall Securities, emphasized the Robotaxi business in a look on Bloomberg TV on Wednesday.
He said he had “strong faith” in Tesla's ability to launch Robotaxis because Musk's owner of Xai gave Tesla the “first Mover advantage” in the physical space of AI. But he estimated that Robotaxis would take three years to pay.
Tesla has denied offers to pair with existing hailing ride platforms like Uber to sell Cybercab's business, which could delay its robotaxis to become mainstream.
On a note published on the day Cybercab was released in October, Jefferies analysts wrote that Tesla could struggle without a partner like Uber or Lyft.
TESLA's largest cheerleader said the launch of this product requires Musk focus, which has recently been in Doge.
“This quarter is a catastrophe,” Wedbush analyst Dan Ives said in a Tuesday look at CNBC after Tesla's income.
“Everything happens here in terms of opportunities around autonomy, lower cost vehicles, Cybercab, everything else – Musk has to drive it,” he added.
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Big bet on autonomous driving and robots
Musk also sets some lofty goals for autonomous Tesla vehicles and humanoid robots.
Tesla tries Different -EV sales are struggling. Slowing the sale of EV is an issue for Tesla even before Musk's work with the Doge, in part due to increasing competition and consumers who choose hybrids in full electric vehicles.
Musk said he expects Tesla to have millions of fully autonomous teslas on American streets in the second half of the next year.
Musk added that Tesla will “begin to see the abundance of autonomy that goes into a material way around the middle of next year” or the second half of next year.
The company has often missed the target dates in the past, and Musk has previously recognized that it is very optimistic about the appointed time.
Musk also said Tesla is doing great development in Optimus, the humanoid robot, and expects to have thousands of optimus robots working in Tesla factories by the end of the year. He said the company could produce one million robots a year by 2029 or 2030.
