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Tesla’s lacking the deets

24-7-2024 < Attack the System 29 259 words
 
Like a magic trick seen too many times, Tesla’s strategy of touting future plans in the face of difficult fundamentals is losing its luster with investors. 

The EV maker’s earnings per share missed estimates for the fourth straight quarter on Tuesday. But Elon Musk can often help the market overlook bad numbers by shifting focus to what’s next.



The approach worked well last quarter when Tesla’s earnings report was even worse than expected. Talk of the Robotaxi, full self-driving technology, and a cheaper Tesla vehicle helped the EV maker enjoy a nice market rally the past few months after a difficult start to the year.



However, big-picture plans without concrete details fell flat for investors this time around. Tesla’s shares dropped more than 8% at one point in after-hours trading Tuesday. As Business Insider’s Katherine Tangalakis-Lippert and Hannah Getahun write, that’s probably got Musk feeling a little nervous.



Even one of the big takeaways from last quarter — a Robotaxi event in August — was confirmed by Musk to be delayed to October 10.



Meanwhile, Musk was light on specifics about when Robotaxi trips will be possible (he’ll be “shocked” if the first ride doesn’t happen next year) or what a more affordable Tesla model would look like.



Musk somewhat acknowledged his tendency to make big promises for plans without backing them up.



“My predictions on this have been overly optimistic in the past,” he said in response to a question about the first Robotaxi ride.

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