Here’s What We Think Elon Will Talk About During Today’s Tesla Earnings Call
A Tesla earnings call is always a fun experience. More often than not, Elon lets some little tidbit slip that wasn’t part of the script, much to the delight of the audience and consternation of the company’s lawyers. We know there will be talk of deliveries and gross margins and earnings before interest and taxes. GAAP and non-GAAP figures will be thrown around and a few questions will be asked from the steely eyed financial analysts on the call.
The big question on many people’s mind is, will the price of Tesla shares rise or fall as a result? The stock is down about a third from its all-time high in January. Will Elon deliver the goods to make it go back up? For many who are not shareholders, it’s just fun and useful to see how the Tesla story is unfolding. Here are a few topics that may tell the tale.
Editor’s note: Be sure to check in later on YouTube to watch our live coverage of the conference call, which includes all sorts of goodies.
China
Tesla has placed a huge bet on the Chinese market for electric cars, selecting Shanghai for its first new factory. But then there seemed to have been some bumps in the road for Tesla in that country this year. Or not.
First came news that Teslas had been banned from Chinese military installations because their cameras could inadvertently capture classified information. Then there were reports that sales were down significantly, something my colleague Johnna Crider exposed as false a few days ago. Then there was a minor recall for Chinese made Teslas that was a tempest in a teapot.
“The China growth story is the top of the list for Tesla,” Dan Ives, tech analyst with Wedbush Securities, tells CNN Business. “This is their key market. We believe 40% of their sales will come from there next year. I think that’s the linchpin to the stock going up or down.”
Regulatory Credits
One of the constant complaints about Tesla is that it makes more money selling zero-emission credits to other manufacturers than it does selling cars. If its net income for the second quarter exceeds those credits, that will be a significant milestone for the company. “That would throw one of the core bear arguments against the stock out the window,” Dan Ives says. The consensus estimate is that Tesla will report net income of more than $600 million. In the first quarter, it made $518 million from selling credits.
Bitcoin
In February, Tesla said it had purchased $1.5 billion worth of Bitcoin and would allow customers to pay for their cars using the digital currency. In April, the company announced it had netted $101 million from its Bitcoin transactions. The value of digital currencies can fluctuate wildly over short periods of time, which makes professional investors nervous.
For a while, Tesla stopped accepting Bitcoin payments, saying the platform used too much electrical power from fossil fuel sources. But now Elon says Bitcoin may soon be welcome again. Once again, Ives thinks dabbling in Bitcoin is a negative sign that worries investors, much like twisting the tail of the SEC or sparking up a phattie with Joe Rogen. Expect more on this topic to surface during the Q2 earnings call.
Supply Chain Concerns
It’s common knowledge that automakers around the world are struggling to manage a shortage of computer chips, the tiny devices that manage everything from blind spot detection to stability control and adaptive cruise control systems. Tesla is no exception. In addition, demand for lithium, nickel, and other raw materials to manufacture batteries is soaring as more and more manufacturers join the EV revolution. Analysts will be looking for information about how Tesla is managing its supply chains to control costs.
Gigafactories
Tesla is moving full speed ahead to bring its two newest factories in Germany and Austin online while expanding its production facility in Shanghai to produce the Model Y. That’s a lot for any company to manage. It says both Germany and Austin will begin producing automobiles this year before transitioning to full production early next year. Investors will be anxiously awaiting updates on both new factories during the Q2 earnings call.
The Cybertruck
In March, Elon tweeted that there would likely be an update about the Cybertruck during the Q2 earnings call, so we will be paying close attention to any news on that front. Last week we reported that Musk is unconcerned about whether his unconventional electric pickup truck will be a sales hit, saying he likes it even if no one else does. (You either love it or hate it.)
Update probably in Q2. Cybertruck will be built at Giga Texas, so focus right now is on getting that beast built.
— Elon Musk (@elonmusk) March 6, 2021
With GM, Ford, and now Dodge saying they will have electric pickup trucks of their own soon, and the Rivian R1T set to debut in a few months, it will be interesting to see whether Americans will be able to tear themselves away from the traditional looking trucks they love or whether Tesla will trim its sails to make the Cybertruck more appealing to mainstream truck buyers.
The Supercharger Network
Last week, Musk tweeted, “We’re making our Supercharger network open to other EVs later this year.” Investors will be expecting to learn more about that announcement. Morgan Stanley auto analyst Adam Jonas wrote in a research note afterward, “By 2030, we conservatively estimate Tesla supercharging revenue of $2.9 billion, a figure which does not include any revenue from non-Tesla vehicles.” How much revenue could Tesla get from drivers of non-Tesla electric cars? That’s a question that is sure to be raised.
FSD
Another recent development is an announcement from Tesla that it will soon offer its “Full Self Driving” package on a subscription basis. This could be the biggest marketing bonanza since Coca-Cola decided to sell its elixir in bottles. Decades ago, the auto industry found out that leasing could unlock a torrent of new sales. Perhaps subscription services will have a similar impact on revenue. Lots of people might subscribe to a FSD package who would otherwise balk at spending $10,000 for it up front. People will want to hear more about this.
There will also likely be requests for more info on when the FSD V9 Beta will roll out to all Americans who paid for FSD. The last we heard, the answer was ~2 weeks — but that’s been the answer for ~7 months (if not more).
Tesla Semi
With everything else going on at Tesla, it’s easy to overlook the Tesla Semi that has been gestating for a few years now. Production should be beginning soon and investors will be hungry for details.
Energy Storage
The jury is still out on whether Tesla’s acquisition of SolarCity was a brilliant marketing move that fit perfectly with Tesla’s mission or naked nepotism designed to bail out two of Elon’s cousins (as some people suing Mr. Musk argue), but there is no question Tesla is one of the global leaders in grid-scale energy storage. Elon himself has said he expects energy storage will create as much revenue as Tesla’s car business. This whole topic is usually found somewhere toward the end of the official earnings report, but it is really the key to whether Tesla shares will become more attractive to investors in the short and medium term.
Check back later to see how many topics we guessed right about and which ones came up that we didn’t anticipate. We’re not perfect, but we’re usually pretty darn close about these things.
Can Kia’s first electric sedan live up to the hype? After launching the EV4 in Korea, we are finally seeing it in action. A new test drive of the EV4 gives us a closer look at what to expect as Kia prepares to take it global. Here’s how it went down.
Kia EV4 test drive: The good, the bad, and the ugly
Kia claims the EV4 will “set a new standard in electric vehicles” with long-range capabilities, fast charging, and a sleek new design.
The electric sedan features a unique, almost sports-car-like profile with a long-tail silhouette and added roof spoiler.
Kia claims it is “the new look of a sedan fit for the era of electrification.” Despite its four-door design, the company is calling it a new type of sedan.
The design is not only eye-catching, but it’s also super efficient. With a drag coefficient of just 0.23, the EV4 is Kia’s most aerodynamic vehicle so far, enabling maximum driving range and efficiency.
Kia opened EV4 orders in South Korea in March, starting at about $29,000 (41.92 million won). It’s available with two battery options: 58.2 kWh and 81.4 kWh. The entry-level “Standard Air” model, powered by the 58.2 kWh battery, is rated with up to 237 miles of driving range.
The “Long-Range Air” variant starts at 46.29 million won ($31,800) and has a driving range of up to 331 miles (533 km) in Korea.
With charging speeds of up to 350 kW, the EV4 can charge from 10% to 80% in around 29 minutes. The long-range battery will take about 31 minutes.
The interior boasts Kia’s latest ccNC infotainment system with a 30″ Ultra-wide Panoramic Display. The setup includes dual 12.3″ driver displays, navigation screens, and a 5″ air conditioning panel.
With deliveries kicking off, we are seeing some of the first test drives come out. A review from HealerTV gives us a better idea of what it’s like to drive the EV4 in person.
Sitting next to Kia’s first pickup, the Tasman, the reviewer mentions the EV4 feels “particularly newer.” The test drive starts around the city with a ride quality similar to that of the K5, if not even better.
As you can see from the camera shaking, the ride feels “a bit uncomfortable” on rough roads. However, on normal surfaces and speed bumps, Kia’s electric sedan “feels neither too soft nor too hard,” just normal. The reviewer calls the EV4’s overall ride quality “quite ordinary” with “nothing particularly special about it.”
When accelerating, the electric car was smooth in the beginning but felt “a little lacking in later stages.” Overall, it should be enough for everyday use.
One of the biggest issues was that the rear window appeared too low. The rear brake lights also stick out, making it hard to see clearly through the rearview.
Keep in mind that the test drive was the Korean-spec EV4. Kia will launch the EV4 in Europe later this year and in the US in early 2026.
In the US, the EV4 will include a built-in NACS port for charging at Tesla Superchargers and a driving range of up to 330 (EPA-est) miles. Prices will be revealed closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Would you buy Kia’s electric sedan for around $35,000? Or would you rather have the Tesla Model 3, which starts at $42,490 in the US and has up to 363 miles of range? Let us know in the comments.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla Model Y RWD in the US, Cybertruck bait-and-switch, Rivian earnings, and more.
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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Hyundai’s 2026 IONIQ 9 EV is launching with a lease deal, affordable rates, and a big rebate, making the automaker’s largest EV a competitive choice.
Leasing a 2026 Hyundai IONIQ 9
CarsDirect reports that, according to a bulletin sent to dealers, the 2026 Hyundai IONIQ 9 S is $419 for 36 months with $4,999 due at signing based on 10,000 miles a year. That makes the effective cost of the nationally available lease $558 monthly.
That’s slightly more expensive than the Model Y Long Range Rear-Wheel Drive, which debuted this week. It can be leased for $399 with $4,093 at signing or $513 per month. That’s a price difference of only $45 per month, potentially making the IONIQ 9 a better value, since Hyundai’s first three-row electric SUV gives you more car for the money.
The IONIQ 9 offers 335 miles of driving range, fast charging capabilities, room for seven, and prices start at $60,555.
Financing and incentives
Hyundai isn’t offering rebates on the IONIQ 9, but good news – it qualifies for the $7,500 federal EV tax credit because it’s manufactured in Georgia.
The IONIQ 9 has national financing rates as low as 1.99% APR for up to 60 months. For a lower monthly payment, there’s a 72-month option at 2.99%. Compare that to the most affordable 2026 Tesla Model Y, which has a 72-month option at 5.49% APR, and it shows what a good deal it is.
There’s also a $5,000 financing incentive available, but you have to choose a loan at a higher interest rate to get it. The $5,000 Dealer Choice Bonus helps lower prices if you finance at 5.99% for 60 months and 6.59% for 72 months.
However, it’s cheaper to opt for the 1.99% APR deal instead of the Dealer Choice Bonus and higher interest rate; CarsDirect found that the 1.99% APR could save IONIQ 9 buyers up to $2,200:
On a 5-year loan at 1.99%, we estimate the IONIQ 9 would cost $63,084. With the APR and rebate combo, it would cost $63,783. Here, opting for the lower rate would save buyers roughly $700. But that’s not the whole story. That’s because Dealer Choice offers, available on many Hyundais, allow a mark-up of up to 1%.
As a result, the $5,000 rebate and higher rate of 6.99% could cost buyers over $2,200 more than simply taking the lower rate to begin with.
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