Tesla's Deliveries Set to Exceed Expectations, even with Elon Musk Factor

By Kevin Armstrong
Tesla Q1 deliveries are expected to exceed expectations
Tesla Q1 deliveries are expected to exceed expectations
Harbles/Twitter

Barclays Senior Autos Analyst Dan Levy spoke with Yahoo Finance, highlighting Tesla's cost advantage and the role of Elon Musk in the company's success.

According to Levy, Tesla's first-quarter delivery figures are expected to exceed expectations, with a forecast of 425,000 units, ahead of the consensus of 420,000 units. This positive outlook could catalyze the stock, which has recently faced negative sentiment due to questions about demand.

The Elon Factor: How Musk's Persona Affects Tesla's Branding

Levy addressed the potential impact of Elon Musk's public persona on Tesla's overall branding. While a recent poll indicated that 36% of Americans said Elon Musk makes them less likely to buy a Tesla, Levy stressed the importance of focusing on Tesla's product and cost lead rather than Musk's persona.

Levy acknowledged that Tesla wouldn't have achieved its current status without Musk's guidance and that his unorthodox approach has contributed to the company's success. He also highlighted the investor day event, where 17 people appeared on stage alongside Musk to showcase the depth of Tesla's bench and demonstrate that there is more to Tesla than its CEO.

Tesla's Cost Advantage, A Key to Unlocking Further Volume

Levy emphasized Tesla's significant cost advantage in the electric vehicle (EV) market, which he believes the company will use to unlock further volume by leaning into its margin advantage. He referred to Tesla's investor day, where the company expressed its intention to drive costs down and, in turn, unlock more volume.

This cost advantage is crucial for Tesla as it faces challenges common to other automakers in the EV market, such as ramping up volume and maintaining healthy margins. Levy noted that Tesla's cost advantage allows them to be more competitive and flexible in its pricing strategies, which will be essential for driving future growth.

Expectations of Further Price Cuts Amid Economic Pressures

As the global economy faces various pressures, Tesla is expected to make additional price cuts to remain competitive. Levy pointed out that the US auto industry's pricing is coming down from all-time highs, and Tesla is subject to the same dynamics. Furthermore, Tesla's new facilities in Austin and Berlin will increase supply, potentially leading to further price reductions.

However, Levy also mentioned that there might be some margin offset due to additional fixed cost absorption and moderating raw material costs. This, combined with Tesla's cost advantage, should help the company navigate the economic pressures and continue its growth trajectory.

A Clear Lead in EV Profitability

Tesla's first-mover advantage has given it a clear lead in EV profitability, with a 17% Earnings Before Interest and Taxes (EBIT) margin last year. Levy compared this to traditional automakers like Ford, which reported -40% EBIT margins on their EVs. This profitability gap demonstrates traditional automakers' challenges in transitioning to EVs and highlights Tesla's strong position in the market.

Tesla's strong Q1 delivery forecast, cost advantage, and a clear lead in EV profitability indicate a bright future for the company. Despite the potential impact of Elon Musk's persona, Tesla's focus on product quality and cost reduction should continue to drive growth and maintain its position as a leader in the EV market.

Tesla Rolls Out Innovative Towing Solutions for Cybertruck and Supercharger Network

By Kevin Armstrong
Pull through supercharging added to UI
Pull through supercharging added to UI

Tesla’s latest update includes a special feature for Cybertruck that may eventually be rolled out to the rest of the lineup. It appears Tesla is getting ready for the summer road trip season early by focusing on enhanced security for drivers who tow trailers and improving accessibility to its Supercharger network for such vehicles.

Cybertruck's New Trailer Alarm Feature

A standout feature in the latest update is introducing a trailer alarm system for the Cybertruck. This innovative feature extends the vehicle's alarm system to monitor the connection status of a trailer hitched to the vehicle. In practical terms, this means the vehicle's alarm will now also protect the trailer, ensuring an added layer of security for owners' valuable cargo.

Activating or deactivating alongside the vehicle's alarm system, this feature can be conveniently managed through the vehicle's settings under the "Towing and Hauling" section, where the "Trailer Alarm" option is located. Owners who prefer not to use this feature can disable it, tailoring the vehicle's security settings to their preferences. At this point, we only have confirmation of the feature in Cybertruck, but it would make sense to add it to the other models that haul trailers as well.

Enhanced Supercharger Network Accessibility

Tesla is also improving the Supercharging experience for drivers with trailers. Recognizing owners' difficulties when charging vehicles while towing, Tesla has been progressively introducing pull-through stalls at Supercharger stations. These stalls are designed to accommodate vehicles with trailers, eliminating the need to detach trailers before charging – a significant improvement over the traditional back-in stalls that dominate the network.

Wes Morrill, a Cybertruck engineer who has become more vocal on X, posted that the “Supercharger team is always looking for opportunities to install these at new locations. Will show trailer friendly stalls on the in-vehicle UI to make it easier when road tripping with a trailer.”

Amid rising gas prices, Tesla's updates offer a cost-effective solution for summer road trips. The new trailer alarm and UI improvements for finding Supercharger stations address towing challenges, enhancing the Tesla experience. This initiative showcases Tesla's commitment to innovation and sustainable travel, enabling owners to bypass the impact of fuel costs and enjoy their adventures.

Tesla Expected to Release 'Actually Smart Summon' and 'Tap to Park' Updates Next Month

By Not a Tesla App Staff
Smart summon in April update
Smart summon in April update

Elon Musk announced that Tesla will finally reintroduce Smart Summon and Autopark to its vehicles. According to the CEO, these features are scheduled for release in April. Tesla removed ultrasonic sensors (USS) from their vehicles in 2022, and with it removed several features, including Autopark, Smart Summon and Park Assist. However, since then, they’ve added High Fidelity Park Assist, a feature that recreates the surrounding environment in 3D. Although, it’s currently only available to vehicles without USS, that’s expected to change in the near future, and could also come bundled in with the new Autopark feature.

This update in April is not only expected bring these features back to vehicles without ultrasonic sensors, but Tesla is also expected to release drastically improved versions of these features, known as Actually Smart Summon and Tap to Park.

Major improvements coming for Summon & Banish (Autopark) next month - Elon Musk

Improved Autopark

Greentheonly, who regularly decompiles Tesla firmware, has indicated that Tesla's latest software, version 2024.8, already contains the code necessary for these new features, but they need to be remotely activated by Tesla. Additionally, Green says the new Autopark system will offer users the choice between parallel and perpendicular parking options. The new Autopark is expected to let drivers visually select a parking spot, exit the vehicle, and let it park itself.

New ‘Tap to Park’ Feature

With the introduction of High Fidelity Park Assist, Tesla laid the groundwork for more sophisticated features like "Tap to Park."

Tap to Park builds on the original concept of Park Seek, a feature discussed by Tesla in October 2022 that aimed to automate the parking spot search process. While the initial vision for Park Seek suggested a vehicle could autonomously search for parking, "Tap to Park" simplifies this idea.

With the deployment of FSD Beta v12.3 going to more users this weekend, the company continues to leverage AI to reduce code in favor of neural networks trained with real-world driving data.

Just last week, Musk posted on X: "Really cool stuff coming both this month and next." Since that post, FSD beta version 12.3 has started going to more users, and now it seems two other long overdue and highly anticipated updates are coming with Actually Smart Summon and Tap to Park. Still no word on auto wiper improvements.

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