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Home » Tesla Q4 2023 Earnings Call: Next-Gen Vehicle in 2025, Cybertruck Ramp, AI Plans

Tesla Q4 2023 Earnings Call: Next-Gen Vehicle in 2025, Cybertruck Ramp, AI Plans

Canaccord Genuity just cut his price target on $TSLA from $267 to $234

Tesla’s Q4 2023 earnings call provided updates on upcoming products and milestones. What were the highlights from Tesla executives including Elon Musk?

Next-Gen Affordable EV Slated for 2025
Tesla aims to start production on its next generation low-cost electric vehicle in the second half of 2025, (Tesla Aims for 2025 Launch of codenamed “Redwood” – A More Affordable Electric Crossover). Musk described the manufacturing system for this model as “revolutionary” and more advanced than any other. It will be produced at Giga Texas, a new factory in Mexico, and one other future site.

Cybertruck Production Ramp Ongoing
Despite complexity, Tesla has started delivering the first Cybertrucks to customers from Gigafactory Texas. Musk said 4680 cell production is not limiting the ramp, with weeks of finished cells in inventory. The goal is maintaining this buffer as output scales.

4 New 4680 Production Lines Coming in Q3
Tesla currently runs one 4680 cell production and assembly line each. The company plans to install four more cell production lines in Q3 to scale up output. Tesla is also working to ramp suppliers for 4680 components.

Slower Growth Expected in 2024
With the next-gen vehicle launch still more than a year away, Tesla expects 2024 volume growth to be notably lower than 2023 levels. But energy storage growth should outpace automotive as Tesla resets between product cycles.

Advertising to Raise Awareness
Musk acknowledged an awareness problem, with most 2023 buyers new to Tesla. Recent ad campaigns reached 10 million unique viewers and drove 500k website visitors. More targeted marketing is planned to educate consumers.

Bullish on Autonomous Driving Business
Musk believes fully autonomous driving could enable an AI and robotics juggernaut. He thinks Tesla’s FSD software is advanced enough to license to other automakers, Musk says FSD Beta V12 will roll out to 400,000 cars in North America in the next few weeks. Optimus humanoid robot production could begin in small volumes in 2025.

Strong Cybertruck Orders; Price Hike Possible
Cybertruck order conversion rates have been very encouraging, potentially selling out 2024 production. Tesla could raise prices further but feels the current demand is “off the hooks.”

In all, Tesla’s future product pipeline looks robust. As manufacturing scales up, Musk aims to leverage autonomous tech and AI to enable new business opportunities.

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