From Nasdaq: 2024-04-27 17:05:00

Tesla (NASDAQ: TSLA) faced challenges in Q1, with costs rising due to Red Sea conflict, factory arson, and Model 3 ramp-up. 9% decline in deliveries and revenue missed estimates at $21.3 billion. Despite weak results, stock rose 13.3% as Elon Musk focused on future FSD, calling Tesla an AI company.

Musk staked Tesla’s future on achieving full self-driving (FSD) capabilities, emphasizing its potential value. With EV growth slowing, Tesla’s stock premium may be about its FSD potential. However, competition in the AV race is fierce, and skepticism remains about Tesla’s lead in FSD technology.

Musk believes Tesla’s 5 million cars give it an edge in the AV race. He envisions an autonomous future where Tesla owners can profit by leasing out their cars. While Tesla’s stock is priced with a premium for its FSD potential, investors should be cautious as competition intensifies in the AV market.



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