During Tesla’s recent earnings call, CEO Elon Musk made several significant announcements regarding the company’s future plans and the electric car market as a whole. Musk emphasized the importance of Tesla’s Full Self-Driving (FSD) program and even went as far as to argue that Tesla should be viewed as an artificial intelligence technology company rather than simply an electric car manufacturer.
One of the most significant announcements made during the call was that Tesla is currently in negotiations with a major car maker to license its FSD software. This move could potentially lead to widespread adoption of Tesla’s cutting-edge autonomous driving technology in vehicles beyond the company’s own electric cars.
Despite the promising news regarding FSD, Tesla also reported a decline in revenue during the call, with automotive revenues dropping by 13%. However, Musk defended his commitment to the company and reassured investors that he is dedicated to ensuring Tesla’s prosperity in the long term.
In an effort to make Tesla’s electric cars more accessible to a wider audience, the company announced plans for new, more affordable models. This commitment to affordability comes at a time when Tesla is facing challenges such as layoffs at its Austin, Texas factory and in the Bay Area, affecting 2,688 employees in Austin alone. Despite these layoffs, Tesla CFO Vaibhav Taneja stated that the company sees the need to prune in order to grow.
In addition to the layoffs, Tesla also saw its Vice-President of Investor Relations, Martin Viecha, announce his departure, making him the third executive to leave the company recently. Despite these challenges, Tesla’s stock ended after-hours trading up 13%, closing at $163.96. This positive market response reflects investor confidence in Tesla’s future prospects and Musk’s ambitious vision for the company’s continued growth in the electric car market.
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