Tesla: profits disappoint, but Model 2 and Optimus in the future

House presents below-expected financial results, but next year will put humanoid robot on sale and more

By: Francesco Barontini

Apr 25, 2024 at 6:53am ET

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Tesla missed its second quarter targets for 2024. It did not do so because, against earnings per share expectations of $0.49, reality says that the company failed to go beyond $0.45 per share, with revenues of $21.3 billion (€19.9 billion) against expectations of $22.2 billion (€20.7 billion).

Yet, the stock jumped up and in aftermarket trading posting +8%. How is this possible? The fact is that, along with the financial results, during the regular shareholders' meeting the company told a lot about what it is doing and plans to do in the future.

Tesla sells Full Self-Driving to other manufacturers

First, Tesla announced that it had increased its artificial intelligence 'training' programme by 130 per cent at the beginning of the year. Thanks to its supercomputer Dojo, it is at the forefront in this field with clear advantages over other manufacturers in terms of autonomous driving and driver assistance.

And that's not all. Full Self-Driving, which with version 12 has begun a new phase, although it has not yet completed its development phase, is ever closer to being released in its final form. And, according to the American company's top management, it is beginning to appeal to other automotive groups. Elon Musk said he has entered into negotiations with a major brand and is confident he can close the deal within the year. Licensing the FSD represents a major revenue opportunity. Not least because Tesla would not only deliver the software, but also the hardware to make it work.

The Model 2 mystery

Tesla also took advantage of the shareholder meeting to talk product. On the one hand, the company confirmed that it had cancelled the Model 2 project, i.e. the £22,000 Tesla, but that it had only done so in order to accelerate the development of an affordable electric model. In short, a Tesla that will cost less than the Model 3 will come. It will just be different from what has been developed so far and known internally as the NV9 project.

The decision was made to debut on the market as early as 2025. The new car, however, will also be built on the next-generation platform that the company has designed for this very car and the Robotaxi which will be unveiled on 8 August.

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Tesla Model 2 rendered by Motor1.com

This is how Tesla commented on the change of schedule:

"This decision may result in a lower cost reduction than previously anticipated, but it allows us to prudently increase our vehicle volumes in a more capex-efficient manner during uncertain times. This would help us to fully utilise our current planned maximum capacity of nearly three million vehicles, allowing for more than 50 per cent growth over 2023 production before investing in new production lines."

Tesla like Uber and Waymo

Confirmation that Tesla is pursuing autonomous driving and robotaxi, there is also the presentation of a new app dedicated precisely to car-hailing management. Tesla, in short, wants to offer a service similar to that of Uber. Initially with a driver, then with the Robotaxis in circulation (perhaps they will be called Cybercabs), also with fully autonomous driving.

Autonomous driving means, for Tesla at least, one more thing: Optimus. It is precisely thanks to advances in artificial intelligence that the company believes it will accelerate the development of its humanoid robot and hopes to put it on sale as early as next year.

In all this, the American company also presented the new Tesla Model 3 Performance, which makes a big leap forward in terms of performance compared to its predecessor. Find all the information about the most powerful version of the American saloon ever in this article.

To prepare for this new phase, the company led by Elon Musk is planning a profound reorganisation, including the expansion of some existing factories, the construction of new plants and, unfortunately, also staff cuts. A choice dictated by the search for maximum efficiency that will also affect the Berlin Gigafactory, where 300 temporary workers will be left at home.