TESLA, INC. 
Tesla has missed its financial targets but is now focusing on expanding its product range. Faced with increasing competition from traditional manufacturers and Chinese initiatives, the company recognises the need to renew its offering. Despite a lack of precise details, Tesla plans to launch a series of more accessible electric vehicles (EVs) and a dedicated autonomous taxi. Elon Musk has denied reports that the affordable EV programme has been cancelled, even stating that the project has been accelerated from the original schedule of the end of 2025.
The first quarter was a difficult one for Tesla, with sales and financial results falling short of expectations. The company's strategy of lowering prices failed to expand the market or increase sales volumes. Tesla now plans to diversify its offering with more models at different price points, focusing particularly on the more economical segments. However, in the short term, this strategy could limit the anticipated cost reductions.
Tesla is at a turning point, between two major waves of growth: the global expansion of Models 3 and Y, and the next wave, which should be driven by advances in autonomy and the launch of new products. Currently, the company has record levels of inventory, a sign that current models are not selling as well as hoped. However, Tesla has seen an increase in revenue from its Full Autonomous Driving (FSD) software, thanks to an intensive campaign to integrate new customers.
Continued price reductions for the Model Y and Model 3, as well as low Cybertruck volumes, are unlikely to be the main drivers of growth going forward. Software sales are improving, but remain far from the future vision envisaged by Elon Musk. The company expects to go through a difficult period in the short term, while working to achieve its long-term ambitions. The positive reaction from investors, with a 13% rise in the share price, is testament to the interest in Tesla's promised affordable EVs and robotic taxis.
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