• Sat. Apr 13th, 2024

Tesla’s Full Self-Driving Trial and Its Role in Driving Long-Term Growth: Analyst Tom Narayan Shares Insights on Q1 2024 Deliveries

BySamantha Jones

Apr 3, 2024
RBC Capital places higher value on Tesla’s Full Self-Driving technology than its core car business

Tesla’s progress in Full Self-Driving (FSD) has been a significant factor in RBC Capital’s investment thesis for the company, with analyst Tom Narayan placing high value on the FSD attachment rate and free trial. According to Narayan, the one-month free FSD trial could potentially bring more customers into showrooms and increase the FSD attachment rate, ultimately leading to higher deliveries.

Narayan believes that autonomy is more crucial than Tesla’s car business and that the FSD trial will play a vital role in driving Tesla’s long-term growth prospects. However, he acknowledges that current sentiments towards the company are negative due to softer-than-expected deliveries in Q1 2024.

In Q1 2024, Tesla experienced an 8.5% year-over-year decline in deliveries, with approximately 386,810 vehicles sold. The majority of these were Model 3 and Model Y vehicles, accounting for around 369,783 units. Other models like Cybertruck, Model S, and Model X accounted for around 17,027 deliveries.

RBC Capital identified several factors that may have influenced Tesla’s Q1 deliveries, including factory shutdowns at Giga Berlin due to an arson attack, shipping challenges caused by the Red Sea conflict, pre-buy activities in Q4 2023 before the expiration of tax credits for the Model 3 under IRA policy change and EV demand slowdown in US market.

Looking ahead to 2035, RBC Capital predicts that Tesla will sell approximately 2.5 million vehicles annually in North America and Europe combined while selling over one million vehicles annually in China. The investment bank also predicts that Tesla’s Model 3 and Model Y vehicles will contribute around two million units annually to sales figure while other models like Model S and X would account for around one million units sold annually respectively once matured.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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