Beyond the Numbers: Tesla's Q1 Tale of Economic Turbulence and Technological Promise

Tesla Q1 Numbers Under the Lights

Tesla

In case you missed it, Tesla’s first-quarter numbers came in, and they have Wall Street running for the hills, with critics cheering: “I told you so.”

The company reported its first quarterly drop in deliveries in nearly four years, a moment some have termed a stark deviation from its historical trajectory of relentless growth. However, it’s worth delving deeper to understand the factors at play.

Economic and Competitive Landscape

First and foremost, the broader economic landscape cannot be overlooked. With rising interest rates dampening consumer spending power, the cost of living soaring, and the global economy showing signs of strain, the automotive sector, especially the EV market, has not been immune to these headwinds. Therefore, Tesla's sales performance this quarter cannot be viewed in isolation but as part of a larger economic tableau that has also left its mark on other sectors. The company also expected this, which prepared investors for a difficult year during the last earnings call.

Moreover, the competitive landscape has been intensifying. BYD, Tesla's closest competitor and a powerhouse in its own right, briefly overtook Tesla in sales in the last quarter of 2023, only to experience its own significant sales drop of 43% in the first quarter of 2024. This parallel trajectory underscores a shared challenge: navigating a market that is becoming increasingly saturated, competitive, and sensitive to pricing dynamics.

Musk's Commentary

In the wake of Tesla's reported delivery numbers, Elon Musk took to his platform X, which he has 180 million followers, to address critics directly. Musk's response to investment analyst Ross Gerber's continued criticism, stating, "He’s such an idiot that he can’t even tell he’s an idiot," defending Tesla's position by highlighting BYD's significant sales drop and asserting, "This was a tough quarter for everyone."

He’s such an idiot that he can’t even tell he’s an idiot.

BYD sales dropped by 42% from last quarter. This was a tough quarter for everyone.

— Elon Musk (@elonmusk) April 3, 2024

Amidst this, Tesla's disproportionate share of media scrutiny makes these numbers seem even worse. For example, Reuters's story on BYD's 43% decline in deliveries was less than 400 words, while Tesla’s miss on deliveries was more than 800 words. The company's every move, statement, and quarterly performance is magnified, analyzed, and debated, creating a narrative battleground that extends far beyond the confines of financial spreadsheets, production lines, or even fair play.

Tesla’s Technological Innovations Extend Beyond the Car

Tesla's commitment to pushing the boundaries of technology remains unwavering, especially in the realm of Full Self-Driving (FSD) capabilities. The company's confidence in this revolutionary technology is apparent in a new offer of a complimentary one-month trial of its FSD software.

This bold move underscores Tesla's belief in the transformative potential of its autonomous driving technology and its readiness to showcase this innovation to a wider audience, inviting them to experience the future of driving firsthand.

Moreover, Musk's pinned post on X offers a visionary glimpse into Tesla's future, emphasizing the transformative potential of Tesla's Full Self-Driving technology.

Most people still have no idea how crushingly good Tesla FSD will get. It will be superhuman to such a degree that it will seem strange in the future that humans drove cars, even while exhausted and drunk!

The Future of Tesla and the EV Market

Tesla's strategic decisions, including price adjustments and the anticipation of a slower growth year, reflect a calculated approach to these challenges. The company's focus on ramping production for the updated Model 3 and navigating unforeseen disruptions, such as the Red Sea conflict and an arson attack at its Berlin factory, speaks to the operational hurdles it faces amid a complex global environment.

For Tesla and BYD, this period is a chapter in a longer saga of adaptation, resilience, and relentless pursuit of a future where electric vehicles are at the heart of global mobility. As the dust settles on this quarter's developments, the focus inevitably shifts to the strategies, innovations, and decisions that will define the next phase of growth for these electric vehicle titans.

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Tesla Launches New Long Range RWD Model Y in U.S.: More Affordable and Longer Range

Not a Tesla App

Tesla has finally launched the refreshed Model Y Long Range Rear Wheel Drive (LR RWD) in the United States. While the refreshed Model Y RWD was available as a Launch-Series option in the Asia-Pacific and European markets, it wasn’t yet available at all in North America. Once the Launch Series stopped being offered, Tesla began shipping non-Launch Edition Model Y LR RWDs in Asia and Europe earlier this year, but didn’t bring it to the United States until now.

The LR RWD is one of Tesla’s most affordable vehicles, starting at $44,990 (or $37,490 after the Federal EV Rebate).

Model Y LR RWD

Spec-wise, the refreshed Model Y LR RWD is a compelling alternative to the AWD model. Tesla has kept the premium interior and audio options on the North American variant, so you get the full experience of the refreshed Model Y. You also get more range and faster charging than the AWD model. The only downside is that it’s two-wheel drive and slower acceleration. However, given the lower price and additional range, those may be worth the tradeoffs.

*Listed ranges are EPA Ranges.

Pricing

All in all, you get a fantastic deal, given the lower price tag. The refreshed Model Y LR RWD is priced $4,000 less than the AWD version while still offering many of its attractive features.

*Post-tariff pricing.

Availability

The Long Range RWD is expected to begin shipping immediately in the United States. Tesla has not made the vehicle available in Mexico or Canada yet, likely due to tariff complications. Once the tariff rates settle, Tesla will likely look to export the vehicles from the U.S. to the other two North American countries.

With the arrival of the Long Range RWD variant, the last version we’re waiting for is the refreshed Model Y Performance. That’s likely to be an exciting vehicle, and we’re hopeful it will be in customers’ garages before the end of 2025.

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Tesla Introduces New Dynamic Supercharger Pricing

Not a Tesla App

Tesla is adjusting its Supercharger prices based on current usage in a new pilot program. Tesla’s pricing structure has typically revolved around traditional time-based peak/off-peak schedules but is now migrating to a more dynamic model based on live Supercharger utilization.

This development, announced officially through the Tesla Charging X account, should make Supercharger pricing more accurately reflect the demand for the specific Supercharger site instead of basing pricing on past usage.

Live Utilization Pricing

The core of this new pilot will launch at just 10 Supercharger sites in North America. The particular sites in question have not been clarified, but one of the locations is the Supercharger located in Davis, California.

Tesla intends to expand the pilot based on feedback and the success of the initial rollout. We could be looking at the future of Supercharger pricing around the globe.

New Chart and Features

Today, Tesla typically offers two or three prices based on peak and off-peak demand, meaning that Supercharger prices are based on the hour of the day. The current Supercharger chart in the vehicle shows the hours and price on the X-axis, while the Y-axis is the typical demand (image below).

The current chart for Superchargers versus the new one at the top of the page

Not a Tesla App

However, with the new charts that will soon be added to vehicles, Tesla will display the time on the X-axis, and the Y-axis will show the historical demand and the current price (photo at the top of this page).

In theory, the Supercharger's historical demand and real-time usage should be pretty similar, but there will be exceptions, like holidays and other events. Unexpected high and low usage will play a role in the pricing, such as sporting events and natural disasters. If the Supercharger is busy, then pricing will be high; otherwise, it will be low.

This also introduces a new feature, since pricing is now based on actual demand, users could navigate to a Supercharger that is less busy and, therefore, cheaper. In the hero image, we can see that Tesla will add a new “Find Lower Price Charging” button in a future vehicle update. This will likely highlight other nearby Superchargers that are less busy and less expensive.

However, it seems like Tesla may also start charging more for Superchargers than they do today when they’re extremely busy. Judging by the screenshot Tesla shared, the estimated usage never passed the $0.45 per kWh at the Davis, CA Supercharger. However, it seems that there’s a new price of $0.54 per kWh when the Supercharger usage is at its peak.

The good news is that Tesla is being more transparent and indicating whether the price is low or high with new labels. This change will give users more choices in terms of charging prices. If you want to save a few bucks, you can drive to a less busy Supercharger. The price will also be based on actual usage, which seems like a fairer way to determine price.

While Tesla hasn’t updated vehicles yet to show these new charts, the latest version of the Tesla app already incorporates the changes.

What Tesla Says

Max de Zegher, Tesla’s Director of Charging, elaborated on the pilot program on X.

He points out that Tesla Charging’s rates have been consistent, and it has focused on improving the charging experience and availability. Off-peak and on-peak pricing will help to increase both of these.

Tesla has outlined exactly how this new live feedback loop will function. The more accurate real-time station demand can allow Tesla to adjust pricing if a station is experiencing congestion during traditionally “off-peak” hours. On the flipside, if a station is unusually empty, Tesla can reduce the pricing.

This easily incentivizes customers who are keeping an eye on charging costs, as changing your charging destination can be as simple as the tap of a button. Most interestingly, Tesla says that the average price paid by customers is expected to remain the same as with the previous time-based system, even with seasonal and real-time fluctuations.

Crucially, owners can always see the price per kWh on their vehicle’s primary display, as well as in the Tesla app before initiating a charging session. Additionally, Tesla will not change the pricing mid-charge, so there’s no need to worry about it fluctuating up or down while you’re charging.

When reading some of our old blog posts, you'll find that @TeslaCharging has been consistent in its pricing principles: improving the charging experience and Supercharger availability. True to those principles, we're now piloting live site utilization for off-peak and on-peak… https://t.co/rIqQzOZfcG

— Max (@MdeZegher) May 6, 2025

Supercharger Pricing History

This move to live-based pricing is being presented as Tesla’s latest step towards managing its vast charging network with a more customer-centric approach. Tesla has had some historical progression in its pricing strategy, so let’s take a look at where we were versus where we are going.

kWh-Based Billing: Tesla has long pushed for billing by the kilowatt-hour (kWh) as the fairest method for customers to pay for the exact energy consumed, avoiding session fees that can obscure actual energy costs. This is now standard in most regions, but it wasn’t too long ago that pricing was determined by the minute.

Idle Fees (2017): To address vehicles remaining plugged in after charging was complete at busy sites, idle fees were implemented to improve stall availability – a practice now common across the industry.

80% SoC Limiter (2019): At busy locations, Tesla introduced an automatic 80% state-of-charge (SoC) charging limit (which users can manually override) to encourage faster turnover, as the final 20% of charging is significantly slower.

Time-Based Peak/Off-Peak Pricing (2020): Pricing based on estimated busy times was rolled out to incentivize charging during less congested periods, helping to distribute demand and manage costs.

Congestion Fees (2023): At particularly busy sites, congestion fees were introduced. These combine the principles of idle fees with disincentivizing charging to a very high state of charge when a station is crowded, with the stated goal of improving availability, not generating profit.

Commitment to Affordability

Alongside these pricing changes, Tesla has reiterated its focus on keeping Supercharging affordable for all its users. Tesla points out that, on average, in North America and Europe, Tesla’s Superchargers are 30% cheaper than other fast-charging options while also being far more reliable.

Beyond that, 2025 is set to be Tesla’s largest year for expanding the Supercharger network while also replacing many older V2 charging sites with faster, more capable V4 Supercharger stations.

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