Tesla's Earnings Call: Top Questions on Investors' Minds

Tesla's investors are lining up for the earnings call

Tesla

Tesla's fourth-quarter earnings call occurs on January 25th after the market closes. Of course, every earnings call for this company draws much attention, but this one may set a new bar. Tesla ended 2022 with a 70 percent drop in stock price and investors looking for answers.

As of writing this, 31 hours before the live webcast will start on YouTube, there are 20 people waiting and more than 100 likes. The company has been gathering questions from registered investors, and users can vote the questions up to ensure they get asked. There are 2,289 questions.

Top Questions and Topics

The top voted question with just under 4,000 votes, which also represents 2.5 million shares, is: After recent price cuts, analysts released expectations that Tesla automotive gross margin excluding leases and reg credits will drop below 20% and average selling price around $47k across all models. Where do you see average selling price and gross margins after the price cuts?

Another question is about the Solar Roof product, its struggles to gain traction, and what changes can be expected in future versions to increase scale. Investors also want to know about the progress of the 4680 battery ramp, the current roadblocks, and when the company expects to scale to 10,000 vehicles a week.

Additionally, investors are curious about the production status of the Cybertruck, the margins for the stationary energy storage business, and the future forecast for Tesla's energy products. They also want to know about the possible brand damage caused by Elon Musk's political tweets and how it will be mitigated.

Missing Questions on Advertising

Musk recently tweeted: Teslas are the safest cars on the road, but most people don't know that. There have been numerous calls for the company to start advertising, and Tesla's incredible commitment to safety would be an excellent campaign.

However, Tesla has no marketing budget, has not spent a dime on commercials or ads and got rid of the entire communications team years ago. Musk used the same promotion he did with PayPal, paying users to refer. But the referral program was stopped in most regions, and several people are still owed a Roadster.

That was a different time. Legacy automakers are no longer snickering at the tiny Silicon Valley start-up. Instead, they are doing everything they can to catch up to Tesla, including millions of dollars in advertising. Tesla reported a significant boost in sales the day after the 2022 Super Bowl when the competition spent millions on advertising their electric vehicles. But that was when those companies' EV programs were barely off the ground, and Tesla had inventory to move.

Now Tesla must promote things the average consumer doesn't know about, like safety, technology and performance. As Musk himself said, people don't know, so it's his job to tell them.

Tesla Hints at Support for Amazon Music Streaming in Update 2024.14.3

Thanks to Tesla hacker Greentheonly, it looks like Tesla will soon offer a native experience for Amazon Music in their cars.

Green decompiled Tesla's latest update, version 2024.14.3, and found references to Amazon's music service, Amazo Music.

In this same update, Tesla added Audible playback, the audiobook service Amazon bought back in 2008.

For Tesla to add support for these music services, they need to have access to APIs that are provided by the music provider. Like everything else, there's likely a deal Tesla and Amazon struck, not only for Audible which was released in this update, but also for Amazon's other services. Given that there are already references to Amazon Music in 2024.14.3, it may not be long before we see the service launch in an upcoming update.

Prime Video 

Although Green doesn't mention any references to Amazon Prime Video specifically, it's possible we may see that service added as well. Tesla's Theater "apps," are essentially links to a browser without the user interface, so detecting references for Amazon Prime Video would be more difficult to discover in Tesla's source code. Since Tesla already implemented Audible and there are now hints of Amazon Music, it’s looking like we may see support for Amazon Prime Video as well.

Not the First Time Tesla Has Hinted at Amazon Music

Back in 2020, we saw Tesla add hints of supporting Amazon Music, although the code was scrapped in a later revision. The same source code in 2020 had references to Pandora, Audible and Apple Music. Since then we've seen Tesla add support for two of those services, with Pandora being the only one left out.

Top Music Services in the World

According to Exploding Topics, Amazon Music is the fourth most popular music service in the world as of February 2024 with a 13.3% share of the market. Number one is not surprisingly Spotify, with Apple Music and Tencent (Chinese music service) taking the second and third spots respectively.

Who Will Get Access

Amazon Music will actually be a great addition, especially if you don't pay for a separate music service like Spotify or Apple Music, but have Amazon Prime.

In the U.S., LiveOne, previously known as Slacker is the default music service that comes for free with Tesla — although Premium Connectivity is still required to listen while driving. Tesla simply calls it "Streaming" in the vehicle since this was named before Tesla had support for multiple music services. Tesla currently supports LiveOne, Spotify, Apple Music, TIDAL, TuneIn and SiriusXM on the Model S and Model X.

Although LiveOne is free, it has several limitations on audio quality, music curation and song selection. It also doesn’t allow you to jump to certain parts of a song.

Amazon Music offers a much more robust solution, so it's expected to be a nice upgrade for owners who already have access to the music service.

If you subscribe to Amazon Prime and get the free version of Amazon Music, it's expected that you'll have access to it in your vehicle without any additional charges, just like you do on your phone and other devices.

Amazon also offers a premium plan for $10 per month that includes higher-quality audio and access to a larger music library. However, we don't believe the premium plan will be required to use the service in the vehicle.

Tesla update 2024.14.3 is currently rolling out to customers around the world, although it could be several weeks before most customers have access.

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Cybertruck Receives 9 Exclusive Features in Tesla Update 2024.14.3 as Tesla Shares Off-Road Guide [Video]

Tesla released a major software update for the Cybertruck with version 2024.14.3 that introduces nine exclusive features, including locking differentials, Trail Assist, Off-Road Mode and many others that add completely new capabilities to the Cybertruck. Telsa also released a guide focused on the new off-roading capabilities of the Cybertruck and how to use each driving mode.

In the same update, the Cybertruck also received additional features that were previously available on other vehicles such as the Colorizer feature, Front Passenger Air Vent and Zoom.

In a video titled “Can The Tesla Cybertruck Really Off-Road?” (video below), the BBC publication TopGear tested the latest off-road software from Tesla in a Californian desert with a Rivian R1T as a benchmark.

New Accessories

TopGear also had access to new prototype Cybertruck accessories, including a Cybercooler and a CyberInflator that lets you adjust tire pressure. Tesla is also planning the launch of Cyberboxes that fit underneath the CyberTent case and safely slide in the bed rails, as shown in the video.

Cybertruck Update

Cybertruck’s Off-Road Mode improves its performance on challenging terrains such as gravel, deep snow, rock, and sand. “All Purpose” mode will automatically adjust the tire slip based on the amount of available traction.

The new CyberTent Mode levels the vehicle using the air suspension so that you get a perfectly flat sleeping surface. It also allows you to control features like lights, air conditioning, and outlets activated — if needed.

The Trail Assist helps maintain a set cruising speed so drivers can focus on steering. The feature works as both a hill ascent and descent control preventing the wheels from slipping, Tesla explained.

Wade Mode, which was previously available allows drivers to enter and drive through “shallow bodies of water, such as defined crossing points of rivers or creeks” whereas the new “Baja Mode” will improve the vehicle’s balance. The vehicle will also handle more freely when Stability Assist is set to Minimal.

The new update also increases the sensitivity of the Cybertruck’s frunk, so that it stops earlier when it meets resistance. The model saw also its turning circle improved by 1.6 feet, making parking and low-speed maneuvers easier.

The adaptive suspension of the Cybertruck was also upgraded with more accurate payload estimations and automatically adjusting damping to deliver a more comfortable ride and better handling.

Off-Road Guide

Cybertruck Off Road Mode

The Off-Road Guide offers a comprehensive overview of Cybertruck features, detailing the various new driving modes and controls, including instructions on using Overland and Baja modes, adjusting ride height, and managing vehicle settings for different terrains.

Furthermore, the guide offers best practices for driving off-road, with tips on navigating various surfaces such as sand, mud, and rocks.

Tesla first started delivering Cybertrucks in November of last year. Despite some setbacks, Tesla continues to scale up the production of the Cybertruck at its Gigafactory in Austin, Texas.

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