Episode 482: Tesla Q3 Earnings Call Analysis and Recap
Oct 27, 2024
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Tesla's latest earnings call unveiled exciting news about the $25k Model 2.5, the futuristic Robotaxi, and advancements in the Tesla Semi. There were standout discussions on appealing financing offers, including 0% APR, and updates on inventory discounts. The podcast also highlighted a new solar-powered supercharger project in California, set to enhance charging options by 2025. With strong delivery numbers and ongoing innovations in Full Self-Driving tech, Tesla's future looks promising as they aim for cost-effective models.
Tesla is revising its referral and loyalty discounts to stimulate demand by offering various incentives across its vehicle lineup.
The company is introducing attractive financing options, particularly for the Model Y, to enhance affordability and drive sales.
Tesla's commitment to sustainability is highlighted by a new solar-powered supercharging project in California aimed at expanding their infrastructure.
Deep dives
Tesla's New Models and Incentives
Tesla is making adjustments to its referral and loyalty discounts, reducing the discount on the Model 3 and Model Y from $1,000 to $500, while maintaining the $1,000 referral discount for the Model S and Model X. Additionally, first-time buyers of the Cybertruck now qualify for a $1,000 incentive, marking the vehicle's second incentive since its launch. The Cybertruck also became eligible for free Full Self-Driving (FSD) transfer until the end of 2024, facilitating a smooth transition for existing Tesla owners wanting to upgrade. These changes, aimed at increasing demand, reflect Tesla's ongoing strategy to incentivize purchases across its expanding vehicle lineup.
Financing Changes for Buyers
Tesla has revised its financing terms, with no requirement to purchase FSD to qualify for 0% APR loans. Specifically, the Model Y offers favorable financing options for terms of 36 to 60 months at 0% APR, while loans on Model 3 are only eligible for 36-month terms to achieve this rate. For longer terms, the Model Y still offers competitive rates, with 0.99% for 60 months and 2.99% for 72 months. This aggressive push on financing is likely aimed at buoying demand, particularly for the popular Model Y, as Tesla anticipates a refresh on the Model 3 soon.
Expansion of Supercharging Infrastructure
A significant new supercharging project is underway in California, featuring a 168-stall supercharger powered entirely by solar energy. The site will be located along the major Interstate 5 corridor, catering to travelers between San Francisco and Los Angeles. Alongside the solar panels, the project will include Tesla megapacks, further enhancing the energy storage capacity and sustainability of Tesla's charging network. This development emphasizes Tesla's commitment to expanding its supercharging infrastructure while promoting sustainable energy generation.
Impressive Earnings Call Highlights
During the earnings call, Tesla reported record third-quarter volumes along with reduced costs per vehicle, showcasing continued growth amid market challenges. The company also revealed that it produced its seventh millionth vehicle, a significant milestone that underscores increasing operational efficiency. Enabled primarily by aggressive cost reductions and expanding production capabilities, Tesla expects to launch the Model 2.5 and other affordable models in the first half of 2025. This strategy aims to capture a larger market share by making electric vehicles more accessible to a broader audience.
Future of Autonomy and AI Developments
Elon Musk highlighted Tesla's advancements in fully autonomous vehicle technology, stating that the goal is for their FSD system to outperform human driving by mid-2025. With the introduction of the CyberCab and RoboVan, both designed for autonomy, Tesla is expanding its focus beyond traditional vehicle offerings. Improvements in AI training have led to higher safety margins, with autopilot use reported at a significantly lower crash rate than the industry average. Additionally, there are ongoing efforts to ensure that existing hardware remains capable of supporting FSD enhancements, including potential upgrades for Hardware 3 vehicles.
Tesla held its quarterly earnings call, where we heard about the Model 2.5 (aka the $25k car), the Robotaxi, the next-gen Roadster, and the Tesla Semi. As always I’ve got expert analysis, highlight clips from Elon Musk and the Tesla executive team, and more!
If you enjoy the podcast and would like to support my efforts, please check out my Patreon at https://www.patreon.com/teslapodcast and consider a monthly pledge. Every little bit helps and there are stacking bonuses in it for you at each pledge level, like early access to each episode at the $5 tier and the weekly Lightning Round bonus mini-episode (AND the early access!) at the $10 tier! And NO ADS at every tier!
NEW: The referral program is back and it's the best one in a while! You can get $500 off of your Model 3 or Model Y purchase (or $1000 off of Cybertruck, Model S, or Model X) by ordering through my referral link. Clicking this will take you to the Tesla website where you can order with the discount applied: https://ts.la/ryan73014
And don't forget to leave a message on the Ride the Lightning hotline anytime with a question, comment, or discussion topic for next week's show! The toll-free number to call or Skype is 1-888-989-8752.
Go to xcelerateauto.com/xcare to find the extended warranty policy that's right for you and your Tesla, and don’t forget to use the discount code “Lightning” (without the quotes) for $100 off your purchase.
P.S. Get 15% off your first order of awesome aftermarket Tesla accessories at AbstractOcean.com by using the code RTLpodcast at checkout. Grab the SnapPlate front license plate bracket for any Tesla at https://everyamp.com/RTL/ (don't forget the coupon code RTL too!).
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