Tesla says soaring gas prices are driving more EV demand

[midian182]

In brief: Nobody wants to see gas become more expensive. Apart from Tesla, that is, which has just reported an increase in global demand for its EVs as a result of soaring fuel prices following the conflict in Iran. The announcement arrived as part of the company's first-quarter earnings report, which contained a few better-than-expected results.

Tesla said on Wednesday that it had seen a "resurgence" in global demand for its vehicles, while the US experienced "slight growth." It also posted its highest first-quarter order backlog in more than two years – an impressive figure considering the federal EV tax credit ended last year.

CFO Vaibhav Taneja said part of the reason for that renewed interest was rising gas prices following the start of the war in Iran and the subsequent disruption to traffic through the Strait of Hormuz.

The current national average price of gas is just over $4 per gallon, the highest it has been since Russia invaded Ukraine in 2022. And even if the strait reopens fully, experts expect it to take months before prices return to anything close to normal.

Data from App Economy Insights

This isn't the first sign of the crisis affecting EV sales. It was reported earlier this month that more buyers are turning to used electric vehicles to avoid painful trips to the pumps. The secondhand market is also being helped by the hundreds of thousands of leased EVs from the early 2020s that are now re-entering circulation.

Elsewhere in the report, Tesla revealed earnings of 41 cents a share, above Wall Street's 37-cent estimate. Revenue came in at $22.39 billion, which was shy of forecasts of around $22.6 billion, but the company still managed to surprise analysts with positive free cash flow of $1.44 billion.

That doesn't mean everything is suddenly rosy again at Elon Musk's firm. Tesla said earlier this month that it delivered 358,023 vehicles globally in the first quarter, up year over year but still below analyst expectations. The company also produced more than 408,000 vehicles during the period, highlighting an inventory gap that suggests demand hasn't fully returned.

There's also the issue of where Tesla is planning to spend its money. Investors initially welcomed the earnings report, but some of that optimism faded after the company said it now expects to spend more than $25 billion this year, up from its previous $20 billion forecast. Importantly, much of that cash is set to go toward AI, robotics, and robotaxis rather than the core car business.

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Tesla says soaring gas prices are driving more EV demand

 

[Endymio]

US national gas price average June 2022: $5.04/gal
Democrat response: "high gas prices are reducing climate change and driving the green revolution!"

US national gas price average today: $4.03/gal
Democrat response: "high gas prices are hurting ordinary Americans and crippling our economy!"

 

[Plutoisaplanet]

Tesla also launched unsupervised Robotaxis in Houston, and says it plans to begin operations in more cities this quarter (although it also said it would do the same in Q4). I would expect it to just launch in Dallas this quarter. It also began pilot production of its Semi and Cybercab, and started building two production lines for the Optimus robot. It has 430,000 more $100/mo FSD subscriptions than a year ago ($0.5B profit/year) and rising. Finally, it recently got authorization to enable FSD supervised in Europe (starting with the Netherlands).

 

[Plutoisaplanet]

US national gas price average June 2022: $5.04/gal
Democrat response: "high gas prices are reducing climate change and driving the green revolution!"

US national gas price average today: $4.03/gal
Democrat response: "high gas prices are hurting ordinary Americans and crippling our economy!"

Well in the US it’s certainly true that gas prices aren’t that high. I just filled up on $3.30/gallon gas yesterday. Plus, the US is importing 1M bpd of crude oil from Venezuela now. Chevron for example can currently refine 300k bpd of it. With the US tapping into around half of the world’s oil reserves now, the US is far less affected by than other nations by the blockade.

 

[Theinsanegamer]

Yeah, no duh? Now wait 6 months for electric rates to spike and you will see the opposite.

Well in the US it’s certainly true that gas prices aren’t that high. I just filled up on $3.30/gallon gas yesterday. Plus, the US is importing 1M bpd of crude oil from Venezuela now. Chevron for example can currently refine 300k bpd of it. With the US tapping into around half of the world’s oil reserves now, the US is far less affected by than other nations by the blockade.

Us average buddy. Not your local average.

 

[GodisanAtheist]

US national gas price average June 2022: $5.04/gal
Democrat response: "high gas prices are reducing climate change and driving the green revolution!"

US national gas price average today: $4.03/gal
Democrat response: "high gas prices are hurting ordinary Americans and crippling our economy!"

- New to politics?

We're on... Week 7 of the 4-6 week Iran war? Let's see how things play out.

 

[Starfals]

US national gas price average June 2022: $5.04/gal
Democrat response: "high gas prices are reducing climate change and driving the green revolution!"

US national gas price average today: $4.03/gal
Democrat response: "high gas prices are hurting ordinary Americans and crippling our economy!"

Rather have higher prices to save the planet than freaking bomb the planet (and civilians) for literally no reason. I don't care about the silly Americans and democrats vs the reds. If I had to pick why my gas price is high, you know what ill take (and most other people) every day of the week. You gotta be mental to pick higher prices because your OWN leader started it. MR NO MORE WARS. Honestly, Biden didnt even do anything. Rather pick a sleepy Joe than a crazy Joe.

P.s. Global warming is 100% a thing. I have witness it myself. How the winter is gone here. Summers are not only longer, but go up to 45-46. Something unseen in my European country. Its been happening slowly too, not overnight. Yea, I ain't too young. I remember when we used to have tons of snow. Now it doesn't even snow. Kids dont know what snow is, its like living in Asia LOLLOL. I remember the summer being just around 28-32. 30-32C is hot, but 40-46 is Sahara desert hot. Fun fact, all the new wars are ruining the planet even more if you go read about it. On the bright side, ill die and gl to all the kids. I had a fun normal life. Enjoy crazy leaders, wars, and hell's heat. The people ruining it for all will be dead too, so I dunno who they will blame. All the dictators are old as hell now.

 

[Plutoisaplanet]

Yeah, no duh? Now wait 6 months for electric rates to spike and you will see the opposite.

Us average buddy. Not your local average.

Based on demand, electric rates would spike in summer, so it would be before that. It's almost completely unaffected by the oil industry since it's extremely diversified and locally generated. Plus, if electric rates spiked it would benefit Tesla even more. Last year their energy generation + storage gross profit made up 22% of their total gross profit (this quarter it was 20%).

Anyways, I acknowledged in the very first sentence you quoted that the national average wasn't high (separate from my local price you criticize lol). You seemed to ignore that. Furthermore my point is INTERNATIONAL prices are what's most affected, so there's little point in discussing national gasoline prices. Californian gasoline princes are another story though; there's nearly a $3 price difference between gasoline prices in Needles, CA and Mohave Valley, AZ or Lake Havasu City, AZ just a few miles apart. Also, a well established $1.50/gallon price difference across state lines between South Lake Tahoe, CA and Gardnerville, NV just miles apart too. On I-80 between Reno, NV and Truckee, CA, there's a similar price difference.

There is a chance that oil prices could increase further, but I think it's unlikely that Gulf country oil exports will be further reduced (and hence demand for US oil should lower). Gulf countries will work to export through all possible channels and since much of their economy depends on it, and they may even find new ways to export. Plus other countries (ie. Russia via Ukraine, 1-2 MMbpd) are pushing to export additional oil as well since it's far more profitable right now. In other words, the world is transitioning to be far less dependent on the Strait of Hormuz for oil imports.

 

[Endymio]

We're on... Week 7 of the 4-6 week Iran war? Let's see how things play out.

We're also on YEAR Five of when Biden promised his sanctions would "crush the Russian economy and force the end of the Ukraine war."

Rather have higher prices to save the planet than freaking bomb the planet

In this case, the bombing is "saving the planet" through less oil consumption. But we're not bombing the entire planet ... just the vicious terrorist regime that was rapidly building ICBMs capable of reaching the entire planet, along with nuclear weapons to arm them with.

You gotta be mental to pick higher prices

Wait a minute: you literally just said higher price "save the planet". Do you have trouble maintaining a consistent line of thought even within a single post?

P.s. Global warming is 100% a thing. I have witness it [sic] myself. How the winter is gone here.

Yep, a few thousand years ago (the blink of an eye in geologic terms) we were in the middle of an Ice Age. Did you forget that?

As for "winter is gone", that's not true here in the US. First time I've seen snowfall in late April in the Deep South:

April Historic blizzard of 2026 smashes snow records as millions begin to dig out, and dozens of cities set all-time snow records

 

[wiyosaya]

We're also on YEAR Five of when Biden promised his sanctions would "crush the Russian economy and force the end of the Ukraine war."

SMH With Trump reducing Russian sanctions on oil how many times at this point? Sorry, but no sane person would blame Biden for Trump reducing Russian sanctions.

Obviously, there's a big difference in Trump policies towards Russia and Biden policies.

 

[Endymio]

SMH With Trump reducing Russian sanctions on oil...no sane person would blame Biden for Trump reducing Russian sanctions.

Oops!

BBC, May 19, 2021: "In a major win for [Moscow], President Biden waives Trump-era sanctions on Russian pipeline Nord Stream 2....The US also lifted sanctions on the executive - an ally of Russia's Vladimir Putin - who leads the firm behind the project. Critics say the pipeline is a major geopolitical prize for the Kremlin...

Obviously, there's a big difference in Trump policies towards Russia and Biden policies.

Very, yes.

CNN, Jan 20, 2022: "Ukrainian President pushes back on Biden: ‘There are no minor incursions ... Officials in Kyiv were “stunned” by Biden’s comments. Ukraine’s foreign minister, Dmytro Kuleba, said that Biden’s comments served as an invitation to attack by Moscow...."

AP, April 3, 2018: "The Trump administration is sending 210 Javelin anti-tank missiles to Ukraine, providing the government with a powerful new weapon to use against Russian-backed separatists...The [Obama-Biden] administration had refused, wary of putting weaponry into an ongoing conflict...."

NBC NEWS, April 9, 2018: "[President] Trump becomes the first world leader to sanction members of Putin's inner circle, including Putin's son-in-law ...."

CBS NEWS, Mar 26, 2018: "Trump orders expulsion of 60 Russian diplomats [and] closure of Russia's Seattle consulate for spying ... this [becomes] the largest mass expulsion of Russian diplomats in history....."

Time Magazine, April 12, 2018: "Just Confirmed: ‘Hundreds’ of Russian Troops Killed in a U.S. Attack in Syria ... the attack was ordered by President Trump...."

Deutsch World, Aug 2017: The Trump Administration has approved the $10.5 billion sale of a Patriot anti-missile system to NATO ally Poland ... the deal had been previously canceled by the Obama-Biden Administration after Russian President Putin voiced concerns over escalating tensions...."

 

[GodisanAtheist]

We're also on YEAR Five of when Biden promised his sanctions would "crush the Russian economy and force the end of the Ukraine war."

- And Trump said he's end the war in one day and now he's put himself in a position where he needs to lift some sanctions on Russian oil.

Otherwise it looks like he's more or less forgotten about Ukraine at this point. Can't even deliver weapons Europe has purchased on Ukraine's behalf now.

Maybe he meant he could end the war in Ukraine someday?

 

[Endymio]

Otherwise it looks like he's more or less forgotten about Ukraine at this point

Which is a far better scenario than Biden's dumping $300B into the Black Hole of Kiev -- from which they promptly stole half of it -- and very nearly starting a nuclear WW3 in the process. Even the Leftist Bulletin of the Atomic Scientists noted last year that we came closer to global thermonuclear disaster than at any point in human history, Cold War years included.

2026 Doomsday Clock Statement - Bulletin of the Atomic Scientists

It is 85 seconds to midnight.

thebulletin.org

 

[GodisanAtheist]

Which is a far better scenario than Biden's dumping $300B into the Black Hole of Kiev -- from which they promptly stole half of it -- and very nearly starting a nuclear WW3 in the process. Even the Leftist Bulletin of the Atomic Scientists noted last year that we came closer to global thermonuclear disaster than at any point in human history, Cold War years included.

2026 Doomsday Clock Statement - Bulletin of the Atomic Scientists

It is 85 seconds to midnight.

thebulletin.org

- Hey, I was humoring you by accepting that there is any kind of equivalency between Biden's handling of a conflict between two third parties and Trump's handling of a conflict entirely of his own making, but you know that.

And you're referring to that clown show that is the "Doomsday Clock" we're closer to midnight now than ever before in history, but to your own point the whole thing is bunk.

 

[Endymio]

- Hey, I was humoring you by accepting that there is any kind of equivalency between Biden's handling of a conflict between two third parties

Oops! The Ukraine conflict *is* of Biden's own making. Groups like Cato were predicting a full year before the war began that Biden's attempts to shoehorn Ukraine into NATO would lead to all-out war with Russia. And they were right. Russia made numerous attempts to meet with China Joe regarding the issue. He refused, and publicly stated the issue was "non-negotiable". When he sent Kamala to the Munich Security Conference to tell the world that NATO membership was now "in Ukraine's own hands", Russia invaded three days later.

 

[GodisanAtheist]

Oops! The Ukraine conflict *is* of Biden's own making. Groups like Cato were predicting a full year before the war began that Biden's attempts to shoehorn Ukraine into NATO would lead to all-out war with Russia. And they were right. Russia made numerous attempts to meet with China Joe regarding the issue. He refused, and publicly stated the issue was "non-negotiable". When he sent Kamala to the Munich Security Conference to tell the world that NATO membership was now "in Ukraine's own hands", Russia invaded three days later.

- Ukraine being attacked by Russia (apparently after being bear baited by the US) and America attacking Iran are not equivalent in any way.

Once again, Russia is given no agency in the matter, like a toddler. Shame no one wants to enter into Russia's sphere of influence without military conquest.

 

[Endymio]

- Ukraine being attacked by Russia (apparently after being bear baited by the US) and America attacking Iran are not equivalent in any way.

Right.
Ukraine wasn't exporting terror around the world. Iran was.
Ukraine wasn't developing ICBMs and nuclear weapons. Iran was.
Ukraine wasn't raping, torturing, and murdering thousands of young women. Iran was.
Ukraine wasn't publicly executing people for criticizing the government. Iran was.
Ukraine didn't respond to being attacked by itself striking out against civilian ships of the entire world. Iran did.

 

[GodisanAtheist]

Right.
Ukraine wasn't exporting terror around the world. Iran was.
Ukraine wasn't developing ICBMs and nuclear weapons. Iran was.
Ukraine wasn't raping, torturing, and murdering thousands of young women. Iran was.
Ukraine wasn't publicly executing people for criticizing the government. Iran was.
Ukraine didn't respond to being attacked by itself striking out against civilian ships of the entire world. Iran did.

- Correct, and yet they were invaded by Russia.

You are right in a way. Russia invaded Ukraine without much of a plan and the United States attacked Iran without much of a plan.

Both countries were high on their own supply and vastly underestimated the resolve of the defender and the downstream consequences of their actions.

I stand corrected.

 

[p51d007]

Gas prices would be less in America, if we could refine our own oil. The oil WE have in America is light crude oil which has to be exported, refined, then sent back. The oil we refine in America is the HEAVY oil that comes from overseas.
Plus, the refineries in America are pushing FIFTY years old, and older. I read about a week ago, that they are starting to build a NEW refinery in America for the first time since the SEVENTIES!
Can't really blame the companies that would build one. One president comes along, wants to build refineries, open up drilling etc and then four years later another comes along and wants to shut it all down. Then the next one comes along and wants to start it up again. If I were a business man, investor etc, would YOU want to put money into something that would be shut down, depending on the politics involved?

 

[Endymio]

Both countries were high on their own supply and vastly underestimated the resolve of the defender

LOL, what fantasy world is this? Six weeks in, and Iran was already suing for a cease-fire.

 

[airbornex]

So the core car business is struggling, the demand recovery is mostly because gas got expensive due to a war, and the plan is to funnel an extra $5 billion into AI and robotaxis. Completely normal pivot for an automaker. Nothing to see here. Definitely not the same robotaxi that's been two years away for the last eight years.

 

[Win7User]

Prices for gas always (during wars) goes up, when those fools in Wall Street get nervous they might lose a few million.

 

[GodisanAtheist]

LOL, what fantasy world is this? Six weeks in, and Iran was already suing for a cease-fire.

-Six weeks in and what actual war goals did the US accomplish? Hell, what were the goals again?

Iran still has nuclear material, Hezbollah is still doing its thing in Lebanon, and we've now added that Iran can shut down the strait and the US can't seem to do anything about it other than a counter blockade.

Why did we agree to a ceasefire if Iran was on the ropes? Why not press them militarility until they agreed to whatever actual terms might exist for a full cessation of the conflict?

Mark my words we'll be walking away from this with something ultimately worse than the JCPOA that Trump walked away from in 2018.

Yes, it wasn't a perfect solution, but whatever we end up with here is going to be worse.

 

[Endymio]

-Six weeks in and what actual war goals did the US accomplish? Hell, what were the goals again?

Iran no longer has a navy, an air force, and factories for producing long-range ballistic missiles. Once we retrieve the HEU they've enriched, the goals will be complete.

....and we've now added that Iran can shut down the strait

You haven't been paying attention. Iran has always had that capability, and they've threatened to do so more than two dozen times in the last few decades. Now, though, their "blockade" consists of 12-foot fishing boats armed with 3 guys with rifles.

Why did we agree to a ceasefire if Iran was on the ropes?

Because Iran fears a blockade strangling their economy much more than they do missile attacks at this point. Also, it gives us time to move additional assets to the Strait. The original intent was to have the carrier wing from the Gerard Ford taking out these pesky Iranian speedboats ... but that carrier experienced a fire en route and had to turn back for repairs.

 

[Endymio]

So the core car business is struggling, the demand recovery is mostly because gas got expensive due to a war, and the plan is to funnel an extra $5 billion into AI and robotaxis. . Completely normal pivot for an automaker. Nothing to see here.

Oops! Musk announced nearly three *years* ago that Tesla intended to reinvent itself as a robotics company. Nor is Tesla "struggling":

NEW YORK (AP), Apr 22 2026 — Tesla’s profit rose sharply in the first quarter as its car sales rebounded ... the electric vehicle maker run by billionaire Elon Musk said it earned $477 million in the quarter, up 17% from a year ago....

Definitely not the same robotaxi that's been two years away for the last eight years.

Definitely not, as those robotaxis are now deployed on the streets of Austin, TX.