• Tue. Apr 23rd, 2024

Tesla’s FSD Trial: A Catalyst for Higher Deliveries and Autonomy Investment Thesis

BySamantha Nguyen

Apr 3, 2024
RBC Capital places higher value on Tesla’s Full Self-Driving technology than its core car business

Tesla’s FSD trial could be a catalyst for the company in the second quarter of 2024, according to RBC Capital analyst Tom Narayan. He believes that the one-month free trial could bring more customers into showrooms and increase the attachment rate, leading to higher deliveries.

Narayan also highlighted that autonomy is more significant than Tesla’s car business, with the FSD trial potentially playing a crucial role in the Tesla investment thesis in the long term. Despite his positive outlook on Tesla, Narayan acknowledged that current sentiments towards the company are negative due to softer-than-expected deliveries.

In Q1 2024, Tesla experienced an 8.5% year-over-year decline in deliveries, totaling around 386,810 vehicles. The majority of deliveries comprised Model 3 and Model Y vehicles, accounting for 369,783 units, while other models like Cybertruck, Model S, and Model X accounted for 17,027 deliveries.

RBC Capital identified several factors that influenced Tesla’s Q1 deliveries, including factory shutdowns at Giga Berlin due to an arson attack, shipping challenges caused by the Red Sea conflict, pre-buy activities in Q4 2023 before tax credits expired for Model 3 under IRA law. Additionally, EV demand slowdown in US was speculated upon as having impact on Tesla’s deliveries.

Looking forward to future sales figures , RBC Capital forecasts that by 2035 ,Tesla will sell approximately 2.5 million vehicles annually in North America , 800

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

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