0:00:00.040,0:00:02.639
starting in the US where Tesla revealed

0:00:02.639,0:00:05.200
the biggest slump in earnings in more

0:00:05.200,0:00:07.040
than a decade as the road gets

0:00:07.040,0:00:09.360
increasingly Rocky for the electric car

0:00:09.360,0:00:12.160
industry Tesla made profits of $1.1

0:00:12.160,0:00:14.280
billion in the first three months of the

0:00:14.280,0:00:18.600
year that's a fall of 5 55% on this time

0:00:18.600,0:00:22.400
uh last year revenues were 9% lower and

0:00:22.400,0:00:24.599
both numbers were worse than investors

0:00:24.599,0:00:28.439
had been expecting but Tesla shares well

0:00:28.439,0:00:30.679
they've taken a real pounding this year

0:00:30.679,0:00:32.960
they actually jumped by nearly 12% in

0:00:32.960,0:00:35.079
after hours trade after the company

0:00:35.079,0:00:37.640
promised quicker progress on new more

0:00:37.640,0:00:40.719
affordable models Aon delill has been

0:00:40.719,0:00:41.760
looking at the

0:00:41.760,0:00:44.399
numbers it's been a rocky road for Tesla

0:00:44.399,0:00:46.280
this year higher interest rates are

0:00:46.280,0:00:48.239
taking a bite out of consumer purchasing

0:00:48.239,0:00:50.480
power and pushing Big purchases Out Of

0:00:50.480,0:00:53.239
Reach competition with China especially

0:00:53.239,0:00:55.559
rival electric vehicle maker byd is

0:00:55.559,0:00:57.879
heating up sales have been falling and

0:00:57.879,0:01:00.000
so is Tesla's stock it's down more than

0:01:00.000,0:01:02.760
than 40% this year the mod Y the

0:01:02.760,0:01:04.640
company's been cutting prices and

0:01:04.640,0:01:07.119
announced layoffs and then on Tuesday

0:01:07.119,0:01:08.920
the company reported its first quarter

0:01:08.920,0:01:10.840
earnings missing expectations on

0:01:10.840,0:01:13.040
earnings and revenue and the company is

0:01:13.040,0:01:14.960
anticipating lower deliveries this year

0:01:14.960,0:01:16.040
compared to

0:01:16.040,0:01:18.840
2023 but investors have one bright spot

0:01:18.840,0:01:21.159
to look to Tesla announced it's speeding

0:01:21.159,0:01:23.400
up the launch of a lower priced vehicle

0:01:23.400,0:01:25.400
more affordable models could be a boon

0:01:25.400,0:01:28.240
for cash strapped us consumers and a hit

0:01:28.240,0:01:29.880
in big competitive markets world

0:01:29.880,0:01:32.640
worldwide like China and India Erin

0:01:32.640,0:01:34.880
Delmore there well I also spoke to Seth

0:01:34.880,0:01:36.799
Goldstein who's a strategist at the

0:01:36.799,0:01:38.759
investment manager Morning Star where he

0:01:38.759,0:01:40.640
chairs their committee on electric

0:01:40.640,0:01:42.960
vehicles he gave us his reaction to the

0:01:42.960,0:01:46.159
results from Tesla well we knew that

0:01:46.159,0:01:47.759
deliveries were going to fall and so

0:01:47.759,0:01:49.479
we're likely going to see a revenue

0:01:49.479,0:01:51.520
Decline and a and a larger profit

0:01:51.520,0:01:53.320
decline due to the challenges in the

0:01:53.320,0:01:55.479
quarter and not not only just lower

0:01:55.479,0:01:57.600
sales but the production issues as well

0:01:57.600,0:01:59.399
as ramping up new vehicles like the

0:01:59.399,0:02:01.520
cyber truck that we're going to weigh on

0:02:01.520,0:02:03.719
profits but looking looking at the

0:02:03.719,0:02:05.880
quarter you know the bad news is already

0:02:05.880,0:02:08.758
largely known so now the question for

0:02:08.758,0:02:11.000
investors was what was Tesla's strategy

0:02:11.000,0:02:13.319
going forward were they going to cancel

0:02:13.319,0:02:15.560
the affordable vehicle as was rumored in

0:02:15.560,0:02:17.760
the media or were they going to continue

0:02:17.760,0:02:19.319
it and Tesla said they're going to

0:02:19.319,0:02:21.920
accelerate it plus full self-driving is

0:02:21.920,0:02:23.800
on track to start generating more and

0:02:23.800,0:02:26.800
more Revenue so looking forward I think

0:02:26.800,0:02:28.959
the bad news was largely priced into the

0:02:28.959,0:02:31.480
stock Tes confirmed their strategy and

0:02:31.480,0:02:33.160
that's why we saw the stock rise in

0:02:33.160,0:02:35.760
after hours despite results coming in

0:02:35.760,0:02:38.160
below consensus now of course what's

0:02:38.160,0:02:39.599
going on with Tesla reflects what's

0:02:39.599,0:02:41.319
going on in the global economy and

0:02:41.319,0:02:43.879
things have changed radically since this

0:02:43.879,0:02:47.720
this firm first came to our attention

0:02:47.720,0:02:50.000
and was a disruptor within the car

0:02:50.000,0:02:53.400
industry now every big car maker in the

0:02:53.400,0:02:55.440
world is getting its electric vehicles

0:02:55.440,0:02:57.920
out there so just talk us through the

0:02:57.920,0:03:00.239
future for Tesla as the compet ition

0:03:00.239,0:03:01.519
gets

0:03:01.519,0:03:04.440
tougher well now now Tesla is no longer

0:03:04.440,0:03:06.319
the first mover they don't have that

0:03:06.319,0:03:08.319
advantage of being the incumbit in the

0:03:08.319,0:03:10.280
market now they have to make the case to

0:03:10.280,0:03:12.560
Consumers of why you should buy a Tesla

0:03:12.560,0:03:15.799
versus another vehicle um especially

0:03:15.799,0:03:17.720
Tesla was one of the first long range

0:03:17.720,0:03:20.760
electric vehicles versus early EVS had a

0:03:20.760,0:03:22.760
much shorter range usually half the

0:03:22.760,0:03:25.440
range of a Tesla or less and so that was

0:03:25.440,0:03:27.560
pretty easy for consumers who wanted the

0:03:27.560,0:03:30.560
longer range to choose a Tesla now Tesla

0:03:30.560,0:03:32.040
to rely on things like the full

0:03:32.040,0:03:34.599
self-driving rely on the performance

0:03:34.599,0:03:37.360
specs the battery life um you know

0:03:37.360,0:03:40.239
offering consumers more infotainment

0:03:40.239,0:03:42.080
while they charge those sorts of

0:03:42.080,0:03:44.480
ancillary products and services as a

0:03:44.480,0:03:46.640
reason to buy Tesla over another EV

0:03:46.640,0:03:48.680
brand because the EV Market especially

0:03:48.680,0:03:50.400
in the luxury space where Tesla

0:03:50.400,0:03:53.000
currently operates is largely saturated

0:03:53.000,0:03:55.480
with new players and incumbents and so

0:03:55.480,0:03:57.599
Tesla no longer enjoys having that sort

0:03:57.599,0:03:59.959
of market dominance that they once had

0:03:59.959,0:04:01.560
and just quickly Seth are you concerned

0:04:01.560,0:04:04.079
at all about Elon Musk still being in

0:04:04.079,0:04:07.000
charge of Tesla as the boss as CEO there

0:04:07.000,0:04:08.920
was a lot conversation some time ago

0:04:08.920,0:04:11.400
when uh he bought X and the wrangling

0:04:11.400,0:04:13.439
and the the legal wranglings over X that

0:04:13.439,0:04:16.160
he was not focused on Tesla enough he

0:04:16.160,0:04:18.160
was busy with other

0:04:18.160,0:04:20.759
things well Elon confirmed on on the

0:04:20.759,0:04:22.320
earnings call that he spends the

0:04:22.320,0:04:24.400
majority of his time at Tesla and I

0:04:24.400,0:04:26.199
think we've seen we've seen a very

0:04:26.199,0:04:28.280
strong management team from Tesla that

0:04:28.280,0:04:31.400
includes Tom Zoo who's the effective coo

0:04:31.400,0:04:33.039
who makes a lot of the pricing and

0:04:33.039,0:04:35.440
Manufacturing decisions and so I think

0:04:35.440,0:04:37.800
Elon is is more than capable of

0:04:37.800,0:04:40.400
continuing to be the CEO of Tesla as

0:04:40.400,0:04:42.360
well as meet his other business ventures

0:04:42.360,0:04:44.520
and you know with X he's he's taking

0:04:44.520,0:04:47.360
more of a a technology role he's not the

0:04:47.360,0:04:49.720
CEO of that company so I think he'll be

0:04:49.720,0:04:52.240
able to run Tesla and Tesla will still

0:04:52.240,0:04:53.919
be able to meet their

0:04:53.919,0:04:56.560
goals interesting Seth Goldstein there

0:04:56.560,0:04:58.199
from Morning Star well Tesla is the

0:04:58.199,0:05:00.680
first of the so-called magnific 7 that's

0:05:00.680,0:05:02.759
the tech companies that dominate us

0:05:02.759,0:05:05.240
markets to report quarterly earnings

0:05:05.240,0:05:07.240
today we'll be hearing from Facebook and

0:05:07.240,0:05:10.280
Instagram owner meta Thursday we have

0:05:10.280,0:05:12.759
results from Google owner alphabet as

0:05:12.759,0:05:15.320
well as Microsoft over the past week or

0:05:15.320,0:05:17.320
so around a trillion dollars has been

0:05:17.320,0:05:19.520
wiped off the value of big tech

0:05:19.520,0:05:22.479
companies but on Tuesday us markets were

0:05:22.479,0:05:25.160
higher with the tech heavy NASDAQ index

0:05:25.160,0:05:26.160
up

0:05:26.160,0:05:31.560
1.6% so maybe some optimism is coming AC