Elon Musk made big promises for Tesla, but 2 products are key to a rebound

Core Insights - Elon Musk made significant promises regarding Tesla's future, but benefits are not expected until mid-2026 or later [1] - Analysts are particularly focused on the anticipated launch of a cheaper car and the robotaxi service [2] Financial Performance - Tesla reported a 71% drop in profits and a 9% decline in revenue for the first quarter [3] - Auto revenues decreased by 20% year over year, with vehicle deliveries down 13% [3] Market Reactions - Tesla's stock rose approximately 5% in after-hours trading, but it has decreased by 41% year to date [5] - Analysts from Cantor Fitzgerald emphasized the importance of regulatory approval for full self-driving and robotaxi services as a risk factor for Tesla's stock price [5] Product Development - A more affordable vehicle model could expand Tesla's customer base and enhance competitiveness against low-cost Chinese EVs [6] - Analysts believe that the upcoming cheaper model and robotaxi could provide significant upside for Tesla's stock [7] Robotaxi Insights - Analysts express confidence in Tesla's ability to launch robotaxis, citing Musk's ownership of xAI as a potential advantage [8] - However, it is estimated that robotaxis may take around three years to become profitable [8] Strategic Partnerships - Tesla has declined offers to collaborate with existing ride-hailing platforms like Uber, which may hinder the mainstream adoption of its robotaxi service [9][10] Leadership Focus - There are concerns that Musk's focus on other ventures, such as DOGE, may detract from the necessary attention on product launches [11][12] Future Projections - Musk anticipates millions of fully autonomous Teslas on U.S. streets by the second half of next year [15] - The company expects to see significant benefits from autonomy around mid-next year [16] - Progress is being made on the Optimus humanoid robot, with expectations of thousands operational in Tesla factories by year-end [17]