Tesla's Deliveries Set to Exceed Expectations, even with Elon Musk Factor

Tesla Q1 deliveries are expected to exceed expectations

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Barclays Senior Autos Analyst Dan Levy spoke with Yahoo Finance, highlighting Tesla's cost advantage and the role of Elon Musk in the company's success.

According to Levy, Tesla's first-quarter delivery figures are expected to exceed expectations, with a forecast of 425,000 units, ahead of the consensus of 420,000 units. This positive outlook could catalyze the stock, which has recently faced negative sentiment due to questions about demand.

The Elon Factor: How Musk's Persona Affects Tesla's Branding

Levy addressed the potential impact of Elon Musk's public persona on Tesla's overall branding. While a recent poll indicated that 36% of Americans said Elon Musk makes them less likely to buy a Tesla, Levy stressed the importance of focusing on Tesla's product and cost lead rather than Musk's persona.

Levy acknowledged that Tesla wouldn't have achieved its current status without Musk's guidance and that his unorthodox approach has contributed to the company's success. He also highlighted the investor day event, where 17 people appeared on stage alongside Musk to showcase the depth of Tesla's bench and demonstrate that there is more to Tesla than its CEO.

Tesla's Cost Advantage, A Key to Unlocking Further Volume

Levy emphasized Tesla's significant cost advantage in the electric vehicle (EV) market, which he believes the company will use to unlock further volume by leaning into its margin advantage. He referred to Tesla's investor day, where the company expressed its intention to drive costs down and, in turn, unlock more volume.

This cost advantage is crucial for Tesla as it faces challenges common to other automakers in the EV market, such as ramping up volume and maintaining healthy margins. Levy noted that Tesla's cost advantage allows them to be more competitive and flexible in its pricing strategies, which will be essential for driving future growth.

Expectations of Further Price Cuts Amid Economic Pressures

As the global economy faces various pressures, Tesla is expected to make additional price cuts to remain competitive. Levy pointed out that the US auto industry's pricing is coming down from all-time highs, and Tesla is subject to the same dynamics. Furthermore, Tesla's new facilities in Austin and Berlin will increase supply, potentially leading to further price reductions.

However, Levy also mentioned that there might be some margin offset due to additional fixed cost absorption and moderating raw material costs. This, combined with Tesla's cost advantage, should help the company navigate the economic pressures and continue its growth trajectory.

A Clear Lead in EV Profitability

Tesla's first-mover advantage has given it a clear lead in EV profitability, with a 17% Earnings Before Interest and Taxes (EBIT) margin last year. Levy compared this to traditional automakers like Ford, which reported -40% EBIT margins on their EVs. This profitability gap demonstrates traditional automakers' challenges in transitioning to EVs and highlights Tesla's strong position in the market.

Tesla's strong Q1 delivery forecast, cost advantage, and a clear lead in EV profitability indicate a bright future for the company. Despite the potential impact of Elon Musk's persona, Tesla's focus on product quality and cost reduction should continue to drive growth and maintain its position as a leader in the EV market.

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Tesla’s New Signal Viewer Panel in Service Mode+ Allows You to View Real-Time Data

@scotsrule08 on X

Tesla’s latest software update, version 2025.2, brings new features to Service Mode, continuing the trend of improving in-vehicle diagnostics.

Currently, this feature is only available for vehicles with AMD Ryzen infotainment systems and requires Service Mode+, which is a subscription service aimed at technicians. Intel-powered vehicles aren’t supported yet, but we expect this feature to roll out to them as well unless hardware limitations prevent it.

Thanks to Spencer for providing an image of the panel in action.

Signal Viewer Panel

While update 2025.2.6 adds four service mode improvements, including updates to brake burnishing, charge port calibration, and noise recording panel improvements. In this article, we’ll focus on the new signal viewer panel.

This new panel offers a live data feed from selectable vehicle sensors. You select the signals you’re interested in and it’ll plot the signal on a graph. In addition to allowing you to view real-time signal data, it also allows you to record them.

The signals are searchable and can be easily added or removed from the panel. You can track up to 10 sensors, and the UI allows three of them to be viewable at once.

However, this is Service Mode and it’s more than just pretty looks. You can really dig down into these charts. You can pan them left and right through time, and tapping a specific point shows the exact value of that signal. The panel also supports pinch-to-zoom, enabling you to adjust the time scale across all panels simultaneously.

This feature is exclusive to Service Mode+, which requires a subscription to Tesla’s ToolBox3 software and a connection to a computer. It’s designed to help technicians diagnose issues related to signal quality, noise in the vehicle’s electrical systems, and signal variance in components during driving.

We’re excited to see Tesla’s continued focus on repairability, especially with additions like the Cybertruck’s Interactive Wiring Diagram and the launch of the Tesla Online Parts Catalog, which lets customers purchase parts directly.

Plus, with the reduced cost of ToolBox 3 subscriptions, even DIY enthusiasts now have access to tools that make Tesla repairs more accessible.

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Tesla Introduces New Model Y Variants in Europe; Ends Launch Series

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Tesla has updated its Model Y lineup in Europe, introducing new standard configurations while discontinuing the limited-edition Launch Series. With the new variants now available, European customers will have more choices and cheaper options to pick from.

The Launch Series and some of its exclusive features will no longer be offered—except in the UK, where it remains available alongside the new lineup.

New Models Introduced

Tesla’s new Model Y lineup in Europe includes three main variants. The prices vary slightly from country to country.

• Rear-Wheel Drive (RWD): Priced at €44,990, this model is the most affordable new Model Y, but it also has the shortest range and is missing a few features available on other trim levels.

• Long Range Rear-Wheel Drive (LR RWD): Available for €49,990, this version is essentially the same as the RWD model, but with a larger battery. It has seen a €1,000 price increase compared to the outgoing Long Range RWD model.

• Long Range All-Wheel Drive (LR AWD): At €52,990, this model has seen a price drop of €2,000, making it a better deal than the previous LR AWD Model Y. This is also the only new Model Y to come with most of the same features as the Launch Series, including additional speakers, a subwoofer, premium materials inside the cabin and improved acceleration. Acceleration boost should also become available for this model, letting it match the performance of the Launch Series.

All Model Y variants come with all the improvements that we’ve discussed about the new Model Y, including the new front and rear light bars, improved aerodynamics, ventilated seats, improved heat and sound isolation, and the 8-inch rear touchscreen. Some exclusive options, like the Midnight Cherry Red paint, appear to no longer be available. However, Tesla has already said that they’ll be introducing new paint options for the Model Y in North America.

Compare Model Y Variants

Here’s how the various Model Y variants compare to each other:

Launch Series Ends

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The Launch Series, which debuted just weeks ago in Europe, has now been phased out. This limited-edition model was priced at €60,990 and included a suite of premium features comparable to a bundle deal you may find with other products. It came equipped with Full Self-Driving (FSD), Acceleration Boost, and exclusive badging on the rear liftgate, door sill plates, and puddle lights.

While the Launch Series is no longer available for new orders in most European countries, customers can still get a similar vehicle by opting for the Long Range AWD model and manually adding premium features like FSD. Acceleration Boost, which was standard in the Launch Series, is expected to become available for purchase once these vehicles are delivered or soon afterward. However, some exclusive elements, such as badging and trim details, will remain unique to the discontinued edition.

For now, the UK remains an exception, still offering the Launch Series alongside the newly introduced models.

Performance Model Still to Come

With Tesla now introducing the expected variants of the refreshed Model Y, one notable absence is the Performance model. While the Launch Series was fast due to the Acceleration Boost addon, there’s no doubt the Performance version will be in a league of its own.

What we saw Tesla do with the 2024+ Model 3 Performance variant was more than just using binned motors. The vehicle featured unique bumpers, a spoiler, an improved suspension, sport seats, Track Mode V3 and other features that made the vehicle stand out compared to the Model 3 AWD.

The Performance version of the new Model Y is expected to become available later this year, however, expect it to carry a $5-$8k premium over the AWD model.

Other Regions to Follow

As Europe phases out the Launch Series, other regions are expected to see similar changes. With the other models now revealed, owners in other regions have a better idea of whether they should buy the Launch Series or wait for the additional models to arrive.

Tesla naturally adjusts its offerings based on market demand, and if sales of the Launch Series remain strong in other parts of the world, Tesla will likely wait it out a little longer before offering the other models.

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