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Tesla’s stock (TSLA) surged 12% today, one of its best days in a long time, as Elon Musk tries to position Tesla to ride the artificial intelligence wave.

In a rare occurrence, Tesla had a pretty bad miss on expectations for both revenue and earnings with its financial results in Q1 2024.

Despite the miss, Tesla’s stock surged 12% today. That’s quite the anomaly. So, what gave investors more confidence in Tesla?

There were a few important positive points in Tesla’s results.

First off, Tesla’s automotive gross margins virtually stayed the same despite further price costs, the Cybertruck ramp, and the Model 3 Highland ramp in Fremont. The company confirmed that if you remove those, margins did improve in Q1.

There’s also Tesla’s announcement that it changed its plans about how to bring cheaper vehicles to market. As we previously reported, Tesla postponed NV9, a new “$25,000 Tesla” based on the automaker’s new “unboxed” manufacturing technology.

Many investors and analysts were concerned about this, as a large percentage of Trsla’s expected growth over the second half of the decade was based on this model.

Now, Tesla has confirmed that its change in strategy still involves cheaper model, albeit likely not a $25,000 one, but they will be built on existing manufacturing lines. This was a big positive for investors – although the plan is currently light on details.

The third factor that is likely greatly contributing to Tesla’s stock having one of its best days in a while is the AI wave.

As we previously reported, Musk is virtually putting Tesla all-in on Robotaxi. The CEO again reiterated that if you don’t believe that Tesla can solve autonomy, you shouldn’t own the stock.

Musk is trying to position Tesla to ride the AI wave that is currently taking over the tech industry.

An interesting new thing that the company did with these earnings is that it released its AI training compute capacity:

This is truly impressive and still growing. As we previously reported, Tesla is currently building a massive 100 MW data center with NVIDIA hardware at Gigafactory Texas, which the company is hoping to bring online this August.

Tesla plans to use this AI training capacity to train its Full Self-Driving system with the millions of miles being driven with the “supervised” version of the system:

The data is also accelerating on that front with the release of v12 and the FSD one-month free trial.

While many people remain skeptical, it does appear that Tesla is gaining credibility regarding AI and its self-driving effort, which is contributing to the stock surge.

Electrek’s Take

If you have been following my pieces, you know that I haven’t been the biggest fan of FSD, but I’ve been impressed with v12 so far.

Things could get interesting fast.

Tesla now has the AI training capacity to compete with the biggest AI players and it is growing fast. The automaker is taking a similar approach as it did with battery cells: buying everything you can get your hands on from suppliers and building your own.

For batteries, that means buying from Panasonic, LG, CATL, etc, and building 4680 cells itself.

For AI training compute, it means buying servers from NVIDIA and building Dojo.

It worked for batteries and it could work for AI training also. I think Tesla deserves a meaningful credibility bump in the self-driving space with v12.

Honestly, if I see decent improvements over the next few updates, I might become a true believer. I had FSD Beta on my car for the better part of 2 years and saw very few improvements. v12 alone felt like a 20-30% overall improvement and I’m now way more confident when using FSD.

With that said, it’s important to remain extremely vigilant when using FSD. You need to be ready to take control at all times.

And at the risk of repeating myself for a thousand time, Tesla should release FSD disengagement data.

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Read the wild email Tesla is sending to suppliers amid Supercharger chaos

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Read the wild email Tesla is sending to suppliers amid Supercharger chaos

After firing its entire Supercharger team, Tesla has sent out an email to suppliers which shows just how chaotic the decisionmaking leading up to the firings must have been.

Earlier this week, Tesla abruptly fired its entire Supercharging team, leading to an immediate pullback in Supercharger installation plans. Now we’ve seen the email that Tesla has sent to suppliers, and it’s not pretty.

When the firings were announced Monday night, there was little information about how they would affect Tesla’s plans.

On Tuesday, Tesla CEO Elon Musk said that “Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.” According to Tesla’s website, Superchargers currently have 99.95% uptime.

But in the interim, we’ve already heard about Supercharger projects being cancelled, including halting rollout in the entire country of Australia, including sites that had already been subject to long-term leases and given the go-ahead for construction which will now be abandoned.

And Tesla has also sent out an email to all of its suppliers, which leaked to the internet. Here it is in full, but with contact information redacted:

To all concerned:

You may be aware that there has been a recent adjustment with the Supercharger organization which is presently undergoing a sudden and thorough restructuring. If you have already received this email, please disregard it as we are attempting to connect with our suppliers and contractors. As part of this process, we are in the midst of establishing new leadership roles, prioritizing projects, and streamlining our payment procedures. Due to the transitional nature of this phase, we are asking for your patience with our response time.

I understand that this period of change may be challenging and that patience is not easy when expecting to be paid, however, I want to express my sincere appreciation for your understanding and support as we navigate through this transition. At this time, please hold on breaking ground on any newly awarded construction projects and planned pre-construction walks. If currently working on an active Supercharging construction site, please continue. Contact [email redacted] for further questions, comments, and concerns. Additionally, hold on working on any new material orders. Contact [email redacted] for further questions, comments, and concerns. If waiting on delayed payment, please contact [email redacted] for a status update. Thank you for your cooperation and patience.

The email is remarkable for several reasons, largely because it shows a lack of structure and consideration to the decision to fire the entire team.

Firstly, Tesla states that it is “attempting” to connect with suppliers and that it may have sent multiple emails to some of them. This suggests that Tesla doesn’t have an established method of contact for all of its suppliers – either it doesn’t have a master contact list, or its previous method including points of contact within Tesla is not usable because, well, those points of contact would have been fired.

Second, it says that the “adjustment” (an odd word for firing an entire department) has led to a process of establishing new leadership roles. This is typically something that a company would consider before changing leaders, and ensure that there are current employees with experience who are ready to step up to take the position of a retiring leader, perhaps with a period of mentorship prior to the outgoing leader’s retirement.

Even in a situation where a firing is sudden, it’s typically reasonable to elevate a previous second-in-command to fill the void. This is why it’s beneficial to have a deep bench – something which Tesla has touted before.

Third, Tesla goes on to mention that these suppliers are “expecting to be paid,” which suggests that Tesla is likely to welch on its payment obligations, at least in the short term. We have seen Musk refuse to pay bills before, so mention of skipping out on payment must raise alarm bells for suppliers who have been working in good faith with Tesla.

Finally, Tesla asks for suppliers to continue construction on active projects, but to hold on breaking ground or doing pre-construction site walks. This could be considered unclear, as there are many parallel steps to approval, permitting and construction of sites, so it’s hard to set a single line that is easily communicated about which sites should continue and which sites shouldn’t. Presumably, site contacts within Tesla would be able to reach out to individual sites and tell them whether to continue construction or not – if they were still working there, which it seems they are not.

To ask for patience is reasonable when an unforeseen circumstance hits a company, but this is not an unforeseen circumstance – it is entirely self-inflicted by Tesla.

Other charging providers have reacted to Tesla’s disruption of its own Supercharger plans, with at least one company, Revel, suggesting that it’s ready to swoop in on “really good sites” that Tesla left on the table, particularly in Revel’s home in New York City.

Electrek’s Take

We have heard from several sources who told us that the reason for these firings is because Rebecca Tinucci, former head of Tesla’s EV Charging division, resisted Musk’s demand to fire large portions of her team.

While this is hearsay, it’s plausible considering the language in Musk’s letter announcing the firings – which claimed that some executives are not taking headcount reduction seriously, and made a point to say that executives who retain the wrong employees may see themselves and their whole teams cut. It isn’t a stretch to think that Musk included those demands since they were related to his firing of Tinucci and her team.

The Supercharging team was one of the more successful and crucial teams within Tesla, and many observers consider the Supercharger network to be Tesla’s primary “moat” that makes it better than the competition. Tinucci was also responsible for negotiating NACS agreements across the industry, leading to a huge win when Tesla’s plug became the de facto standard after basically every automaker adopted it over the course of the last year.

Superchargers are also incredibly important, especially in North America. In Europe there are more successful non-Tesla charge providers, but in NA, Tesla is the big dog. And if infrastructure is important, then Tesla pulling back is bad not just for Tesla but for EVs as a whole.

It seems abundantly clear that, whatever explanation we accept, the firing of the Supercharger team was not well-considered (and our readers seem to agree). Even if headcount reduction is necessary, the whole team shouldn’t be laid off. Even if it was necessary as a retaliatory measure – which would not be a good rationale – it still would be wiser to retain some part of it so as to avoid the chaos suggested by the email above.

Whatever mechanism led to the firing, it does fit into a pattern of increasingly erratic behavior that Musk has been showing lately.

Many possible explanations have been advanced to explain this behavior, and most of them don’t increase my personal faith that Musk will make the right decisions with Tesla.

As I said in our original post about Tesla’s first round of layoffs, we do need Tesla to keep pushing the industry forward. While Pandora’s box is open and EVs are here to stay at this point, regardless of Tesla’s ups and comparatively-rare downs, the rest of the industry is still trying hard to pump the brakes on the transition, even if it means America will be less competitive if those companies get their way.

Tesla is one of the few entities that is large enough and committed enough to dragging those timelines forward, whether the rest of the industry likes it or not. We need a healthy Tesla, and for that, we need steadier management. This email is not an example of that – and neither are most of Musk’s managerial actions recently.

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Podcast: more Tesla layoffs, charging team all gone, what is going on? Let’s talk about it

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Podcast: more Tesla layoffs, charging team all gone, what is going on? Let's talk about it

On the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the additional Tesla layoffs, the entire charging team’s departure, and more. Let’s talk about it.

Sponsored by SplitVolt: The Splitvolt Splitter Switch automatically shares power from your existing 240V dryer socket with your Level 2 EV charger. Learn more here.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):

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Save up to $570 on Lectric e-bike bundles, Rad Power flash sale, EVOLV e-scooter special, and more

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Save up to 0 on Lectric e-bike bundles, Rad Power flash sale, EVOLV e-scooter special, and more

Today’s Green Deals are jam-packed once more with EV sales to get you geared-up for the cruising months ahead, led by Lectric eBikes’ 5-year anniversary celebration that is taking up to $570 off select e-bikes, like the XPedition Single-Battery Cargo e-bike at $1,399, while also giving away choices of five add-on accessories. It is joined by Rad Powers’ latest flash sale that is dropping the RadRunner 2 Utility e-bike to $1,299 and also offering free accessories on two other models, as well as a rare special from EVOLV that is dropping the PRO V2 Electric Scooter to its $1,799 low. Plus all of the other days’ Green Deals that are still going.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Lectric takes up to $570 off e-bike bundles

Lectric eBikes is currently celebrating its five-year anniversary, and wanting to extend the celebrations to its customers, has launched a new limited-time sale that is offering five free accessories along with your purchase of either an XP 3.0, XPedition, or XP Trike e-bike. A standout amongst the bunch is the XPedition Single-Battery Cargo e-bike for $1,399 shipped. Down from its usual $1,933 price tag, we only saw it fall to this price for a short-lived period in March before rising to stay at $1,475 since, but today’s deal is bringing things back to the all-time low once more. You’ll find the dual-battery model down to the second-lowest $1,699 rate. It should also be noted that you’ll automatically see the discounted rate once the e-bike and the accessories have been added to your cart.

The Lectric XPedition e-bike was designed for those who are always on the go – especially folks like parents dropping off and picking up their kids from school or delivery drivers who need long travel ranges. It comes equipped with an upgraded 750W rear hub-motor (1310W peak) alongside a 48V battery that carries the e-bike up to 75 miles on a single charge (150 miles with dual-battery), hitting speeds of 20 MPH using only the throttle and up to 28 MPH with the five levels of pedal assistance. It comes with a variety of features to enhance your ride: the integrated cargo rack, custom puncture-resistant tires, hydraulic mineral oil brakes paired with 180mm rotors, a headlamp, taillights, fenders on both wheels, and a backlit LCD display that gives you all the real-time performance data.

Rad Power RadRunner 2 Utility e-bike now $1,299

Rad Power Bikes has launched a flash sale through May 8 that is giving you three varying deals on three different e-bike models; either a $100 off discount or free accessories. The first of these deals is on the RadRunner 2 Utility e-bike for $1,299 shipped. Usually fetching $1,399 since the company lowered prices across its lineup of models, we’ve seen this e-bike included in most of the company’s holiday sales as well as several flash sales throughout the months, often falling to $1,299, but we have seen one instance of the price dropping further to the $1,199 low. Today’s deal is a solid $100 markdown off the going rate that lands at the second-lowest price we have tracked.

Carrying the mantle as Rad Power’s jack-of-all-trades model, the RadRunner 2 comes equipped with a 750W brushless-geared hub motor and 672Wh battery that propels it to a max speed of 20 MPH and travels up to 50 miles on a single charge. It features a four-level pedal assist with a low-profile cadence sensor, and a simple control panel that gives you the battery’s charge level and allows you to adjust pedal assistance settings. It also comes stocked with a rear-mounted cargo rack that offers a 120-pound payload, puncture-resistant fat tires, a standard LED headlight, and an integrated taillight with both brake light and flash mode capabilities.

The second deal is on the RadRunner 3 Plus for $2,099, which comes with a free accessory worth up to $100. This model comes with a 750W rear hub motor and 672Wh battery that hits a max speed of 20 MPH for 45+ miles on a single charge. It has been upgraded with one extra pedal assist level and offers much of the same array of features as the above deal, with the added bonus of fenders for both tires and a full digital display.

The RadTrike e-tricycle is also receiving a free accessory as part of this sale, albeit a pre-designated large basket for front-side mounting for $1,599. It comes with an equally powerful motor as the above models, but with a smaller 480Wh battery that only reaches a max speed of 14 MPH for a much longer 55+ miles of travel range on a single charge. You’ll also get the full list of features from the above deal as well to round out the package.

This flash sale will continue through May 8, with the discounts on the RadRunner 3 Plus and RadTrike being automatically applied in cart when you add both items to your cart. You can browse through Rad Power’s included accessories here. And head over to our Green Deals hub to look through all the other e-bike brands that are having spring sales, as well as deals on power stations, electric tools, water heaters, and more.

Three different frames with the EVOLV PRO V2 Electric Scooter against the night sky with city skyline in background, within post for Lectric 5-year anniversary sale that has the XPedition Cargo e-bike at $1,399

EVOLV PRO V2 Electric Scooter hits $1,799 low

EVOLV is offering a $200 off special on two of its electric scooter models, like the popular PRO V2 Electric Scooter for $1,799 shippedafter using the on-page promo code PROV2-ROCKS at checkout. Down from its $1,999 price tag, we’ve seen a few different discounts drop over the last year on this particular model since its release, all of them falling to the same $1,799 low during major holiday shopping events like Black Friday and Christmas sales. Today’s deal is no different, coming in as a solid $200 markdown that lands at the lowest price we have tracked.

The PRO V2 e-scooter comes equipped with dual 1,200W motors (2,600W peak) and a 52V battery that carries the scooter up to a max speed of 44 MPH for up to 37 miles on a single charge. You can also upgrade to the Pro-R V2 model for an additional $300 ($500 normally – the above promo code works for this upgraded model as well), boosting your motors to 1,400W of nominal power each and extending travel distance up to 50 miles on a single charge. They both feature front and rear spring suspension, front and rear hydraulic disc brakes, a front fender light, a taillight, running lights, turn signal lights, an IP54 water-resistance rating, and a smart center display – all with a foldable design for easy storage and transport when not in use.

The second model included in this special sale is the CORSA Electric Scooter for $2,635 shippedafter using the on-page promo code CORSA-ROCKS at checkout. This model also sports dual 1,200W motors (but with a 4,800W peak) and a larger 60V battery that hits 44 MPH for up to 37 miles on a single charge. It comes with 11-inch tubeless street-style grippy tires, front and rear shock suspension, dual hydraulic disc brakes, twin Halo LED headlights, in-deck lighting, twin LED taillights, turn signal lights, and a large center display.

Spring e-bike deals!

Other new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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