- Tesla posted Q1 revenue drop but stock rose on Musk’s AI promises.
- CEO downplayed results, touted affordable EV and autonomous “Cybercab” plans.
- Devoted fanbase unfazed by turbulence, confident in Tesla’s innovative spirit.
Tesla had a rocky Tuesday, reporting a drop in revenue during its first-quarter earnings call and falling short of expectations.
However, the electric vehicle manufacturer’s fervent fan base remains undeterred by one bad quarter. Despite a 55% decrease in net income from January to March compared to last year, Tesla’s stock climbed more than 10% due to volatile late trading after the call.
Musk’s visions of AI and autonomy placate investors
CEO Elon Musk hand-waved concerns about the low numbers during the call, instead doubling down on vague promises of the future of artificial intelligence at the company and a fully autonomous car.
Musk’s mid-call musings seemed to satisfy investors, as he reiterated Tesla’s commitment to speeding up production of a more affordable car and the autonomous “Cybercab.”
According to industry analyst Gene Munster, Tesla’s dilemma boils down to differing beliefs in the future of electrification. “If you believe electrification — despite all of its troubles now — is going to accelerate,” Munster told CNBC, “Tesla is the best-positioned company to deliver on that future around autonomy and electrification.”
Tesla customers tend to be devout believers in the promise of electrification, described as “cult-like” in their dedication to the manufacturer and its vehicles.
Comeback kings undaunted by challenges
Despite recent regulatory attention, a car recall, and multiple lawsuits, Tesla is no stranger to staging successful comebacks.
The company was among the first few car manufacturers to reopen after the pandemic, marking several quarters of growth and revenue rebound.
But industry probes and factory recalls are hardly deterrents to the majority of Tesla zealots, who remain optimistic about the company’s innovative spirit, according to Munster: “I just believe in what they’re doing from an innovation standpoint.”
