• Mon. Apr 15th, 2024

Tesla’s Autonomy Eclipses Car Business in RBC Capital Investment Thesis: One-Month Free FSD Trial as Catalyst for Q2 2024 Deliveries”.

BySamantha Jones

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

Tesla’s progress in autonomy, specifically Full Self-Driving (FSD), has been placed at a high value by RBC Capital over the company’s car business. Analyst Tom Narayan from RBC Capital believes that Tesla’s upcoming one-month free FSD trial could serve as a catalyst in the second quarter of 2024. He stated that the trial could potentially bring more customers into showrooms and increase the FSD attachment rate, ultimately leading to higher deliveries.

Narayan emphasized that autonomy is more significant than Tesla’s car business and highlighted that the FSD free trial might play a crucial role in the Tesla investment thesis in the long term, especially following the Q1 delivery miss. 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 Tesla Model 3 and Model Y vehicles, amounting to 369,783 units, while other models like Cybertruck accounted for 17,027 deliveries.

RBC Capital identified various factors that might have 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 the expiration of tax credits for Model 3 under IRA policy change and potential EV demand slowdown in US.

Looking ahead, RBC Capital forecasts that by 2035; Tesla will sell approximately 2.5 million vehicles annually in North America

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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