Tesla Q1 deliveries are expected to exceed expectations
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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.
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Tesla’s latest FSD update, version 2024.27.5 brings some improvements when parking your vehicle. This is another undocumented, but one we’re happy to see.
Most recently, the Cybertruck received the undocumented change for the Hands-Free Frunk opening (video below). The Cybertruck also recently received Vision Park Assist, which included steering wheel guides in the visualization showing the direction the front and rear wheels were turned. However, it turns out this isn’t just for the Cybertruck.
Update: We’ve updated this article to mention that this feature isn’t included in update 2024.32 yet.
Quick video on the auto frunk. It's literally 🧍♂️📐
Due to the Cybertruck’s unique rear-wheel steering and steer-by-wire design, Park Assist in the Cybertruck displayed the path of the front wheels, and how they would swing while reversing.
This enhancement is also coming to every Tesla vehicle in FSD 12.5.2 and later. It’s also expected to be available in a future update for non-FSD vehicles. However, it’s unclear whether it will be a later revision of update 2024.32 or the next major Tesla update. This is a neat little update, as it helps drivers better understand and predict the path their vehicle will take during a turn.
Brandon, going by @teslaflexx on X, originally spotted the new visuals recently on an AMD-based Model Y running 2024.27.5 and FSD V12.5.2.
Any vehicles who are on update 2024.27.5 or 2024.27.20 should have access to this new feature.
Looks like Cybertruck wasn’t the only vehicle to get the new guide visuals with park assist. Much better than the lines! pic.twitter.com/tF9ZsWCcWy
Tesla’s Cybertruck has been used as an awesome off-road vehicle so far, with some great videos from both Tesla themselves, as well as many owners who have been challenging difficult off-road obstacles.
One frequently requested feature, however, is additional armor for the Cybertruck to improve its off-road capabilities. Wes Morril, Program Manager for the Cybertruck, has confirmed that Tesla will be introducing Battery Armor and Rock Sliders as retrofit “options” by the end of 2024.
Battery Armor
The Cybertruck’s underbody plate, while not completely unarmoured, isn’t exactly super thick, and can leave the battery exposed if the weight of the truck is left on a high-center point or a sharp rock. This upcoming battery armor will be similar to the armored undersides offered by other companies specifically for off-roading.
Rivian, for example, sells armor as a single package for $3,950 USD, or $5,800 CAD, along with a 20” wheel upgrade, full-size spare, and a utility panel including an air compressor and enough hose to let you reach any of the tires when airing up or down your tires for off-road. Tesla’s upcoming Battery Armor will be a retrofit option, unlike Rivian’s – which can only be added when purchasing the vehicle.
Rock Sliders
The Cybertruck has a simple and clean bottom corner – but that also means that it exposes the plastic trim directly. Rock sliders go on the bottom edge of off-road vehicles between the wheels to protect the vehicle's body. Rock sliders are a pretty common modification, and some companies have already begun to offer them for the Cybertruck – but a first-party OEM option is always best.
This is especially true since most third-party options use the lift points of the vehicle to attach rock sliders, which can make replacing wheels or lifting the vehicle difficult without removing the third-party additions. This adds considerable time to what should be a quick job.
Release Date
We’re looking forward to Tesla bringing these options to the Tesla store in the coming months. Wes said they’d be available as retrofits before the end of 2024, along with the upcoming Winter Tire Package, which is arriving next month. The Winter Tire Package is already available to order for Cybertruck owners.
TeslaFi logs your drives and charging sessions, letting you keep a log of your vehice's activity. We highly recommend checking them out if you use your car for business trips and would like to keep track of reimbursements, if you like to see how much you spend on charging or if you just love statistics. Visit their site and see everything they have to offer!
Tesla Android Project enables you to run Android apps in your Tesla. The platform is Open Source and you can deploy it on your own Raspberry Pi 4. Consider supporting the initiative by donating or purchasing the Compute Module 4 Bundle that delivers the best experience. Get $20 off by using the code: NotATeslaApp
The official Tesla app only notifies you if your car is broken into. By installing Sentry Pro on your phone, you will be notified for all Sentry Mode events. Stay connected and avoid potential surprises by receiving notifications. Stop constantly checking the cameras to ensure safety. Check only when necessary, save battery and get peace of mind. Get a 7 day free trial here!
Stay organized, connected, and stylish with Cyberbackpack — the #1 backpack, luggage & travel accessories for Tesla owners. We highly recommend checking them out if you commute or travel and would like a backpack or luggage that is sleek, secure and durable. View their products page and see everything they have to offer!
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Although we share official Tesla release notes, we are not affiliated with Tesla Motors. We are Tesla fans and supporters.
