Axios

Tesla's revenue and profit tumbled in the first quarter, but the company promised to speed up the development of new vehicles as it encounters stiff headwinds in the EV space.

Why it matters: Tesla is grappling with slumping sales, increased competition and questions over its spending priorities.

Tesla's revenue and profit tumbled in the first quarter, but the company promised to speed up the development of new vehicles as it encounters stiff headwinds in the EV space.

By the numbers: The company reported revenue of $21.3 billion and net income of $1.13 billion in the first quarter, down 9% and 55% from the same period a year earlier.

Between the lines: In an earnings presentation, Tesla acknowledged "numerous challenges," including logistical hurdles in producing and delivering the recently refreshed Model 3 sedan.

• The company said it is "expanding vehicle financing programs," including "attractive leasing terms," after vehicle deliveries fell 8.5% in the first quarter, compared with a year earlier.

One of Tesla's biggest selling points got a significant third-party validation: Consumer Reports declared the company's vehicles have the lowest maintenance costs of any major automotive brand.

Why it matters: The endorsement could deliver a boost to the Tesla brand's perception at a time when sales are sagging.

• Tesla CEO Elon Musk has long maintained that the company's vehicles are affordable to maintain, in part due to the fact that EVs have fewer components than gas vehicles.

Here are some of my key takeaways from a selection of today's major earnings reports:

🎧 Spotify: Interim CFO Ben Kung said that "historical price increases have had minimal impacts on growth" — notable just three weeks after a report that the company is planning to increase prices later this year. (+11.4% at close)

🏡 Pulte: The homebuilder's profit-per-home is jumping as it capitalizes on a nationwide housing shortage. The company's "home sale gross margin" was 29.6% in the first quarter, up 0.5 points from a year earlier. (+4.6%)

📦 UPS: The shipping giant's revenue fell 5.3% in the first quarter, compared with a year earlier, but cost cuts helped offset the decline. (+2.4%)

U.S. soccer legend Megan Rapinoe said Tuesday that this is a "watershed" moment for women's basketball and across sports — and businesses would be smart to take notice.

Why it matters: Rapinoe highlighted the enthusiasm surrounding this year's women's March Madness as a sign of the shifting public views of women's sports, after years of being undervalued.

The National Women's Soccer League has brought a crucial boost in audience growth for the TV networks airing the games, executives said at the TN50: Business of Women's Sports Summit on Tuesday.

Why it matters: The growth in women's sports are alleviating pressure that broadcast networks face with the decline of linear TV and the fragmentation of audiences.

The Federal Trade Commission voted 3-2 on Tuesday to ban noncompete agreements, which prevent workers from taking positions with competitors for a period of time after they leave a job.

Why it matters: The ban could be a win for workers, particularly at the low end of the income scale.

Shasta Venture, a venture capital firm whose investments have included Nest and Canva, failed to get approval from its limited partners to form a continuation fund, Axios has learned.

Why it matters: With the ongoing dearth of exits, hangover from overinflated valuations during the pandemic, and tough fundraising market for VCs, this may be a path that more firms try to take.

"Women's sports are not having a moment," Mollie Cahillane, a reporter at Sports Business Journal said Tuesday at TN50: The Business of Women's Sports Summit. "Everyone else is just now finally paying attention."

Why it matters: Reporters are now trying to use their platforms to tap into that attention and elevate athletes' stories and experiences to grow the game.

The NIL era is becoming overwhelming for athletes before they even begin their collegiate careers, Fara Leff, COO of sports agency powerhouse Klutch Sports Group, said at the TN50: Business of Women's Sports Summit.

Why it matters: Earning power for college athletes is higher than ever, but so is the pressure for those athletes to cut branding deals.

Pranav Kanade, portfolio manager of the VanEck Digital Assets Alpha Fund, wants to generate excess returns by not following the crowd and by keeping an eye on the crypto whales.

The big picture: The theme this year is Bitcoin, not Ethereum nor altcoins, Kanade said.

iHeartMedia and Deep Blue Sports + Entertainment announced Tuesday that they are launching the Women's Sports Audio Network, the first-ever audio platform dedicated strictly to women's sports.

Why it matters: It's the latest sign of the huge momentum in women's sports — and the expansion in media to capitalize on it.

The popularity of women's sports will last and brands who aren't in the game are missing out, New York Liberty CEO Keia Clarke said at the TN50: Business of Women's Sports Summit on Tuesday.

Why it matters: Thanks to Caitlin Clark's arrival, the WNBA is under pressure to capitalize financially as it heads into arguably the most anticipated season in its 28-year history.

Alexis Ohanian's venture capital firm 776 will host a women's only track event in September called the 776 Invitational, he announced at the TN50: The Business of Women's Sports Summit on Tuesday.

Why it matters: The event is intended to bring more attention to track outside of the Olympics.

WNBA legend Sue Bird said Tuesday that "athletes aren't just working on their game" as they navigate the evolving NIL landscape. They're "working on their brands."

Why it matters: The NCAA's adoption of NIL has dramatically changed the college sports landscape, allowing students to make millions off of their "name, image and likeness" through brand deals and sponsorships.

Women's sports fans are "super engaging and super hungry" with social media serving as a key conduit, WNBA star Alysha Clark said at the TN50: The Business of Women's Sports Summit on Tuesday.

Why it matters: Brands' tendency to follow the fans is driving investment into women's sports.

The 2024 proxy season is headed into its busiest stretch, with U.S. companies hosting annual shareholder meetings that some activist investors plan to crash.

The big picture: The outcomes of these votes can have long-lasting impact on the companies and can highlight key trends within large institutional investors on where they stand on company-related issues.

Zoom in: After Disney's defeat of Trian earlier this month, the next major fight on the docket is Norfolk Southern's battle with activist investor Ancora.

• Ancora has nominated a whopping seven directors to join the railway company's board and is pushing to oust the CEO.
• Norfolk Southern's annual meeting is on May 9.

Zoom out: The chart below lists ongoing proxy fights and campaigns resolved by either a vote or a settlement.

What we're watching: Axios previously reported that the speed with which some companies are settling and the terms of the deals they are reaching with activist investors are under growing scrutiny, from both investors and the Delaware Court of Chancery.

It's been over a year and a half since Kim Kardashian teamed with Carlyle Group vet Jay Sammons to launch SKKY Partners, a consumer-focused private equity firm, but the early buzz has given way to the slog of first-time fundraising.

By the numbers: SKKY only secured $121 million in capital commitments through late March, according to federal securities filings.

The Latin American Music Awards (AMAs) will be presented in a combination of English and Spanish this Thursday, marking the first time any major U.S. award show will feature a bilingual broadcast.

Why it matters: Unlike most award shows, winners for the Latin AMAs are selected by popular vote, not fellow artists. That puts an even higher premium on building a show that reflects modern U.S. Latino culture, per Ignacio Meyer, president of Univision Television Networks Group.

As a TikTok divestment law races to passage, TikTok's parent company ByteDance must reckon with the legislation across all of its apps, many of which are growing rapidly in the U.S.

Why it matters: The broad language included in the bipartisan TikTok ban bill could make it impossible for most ByteDance apps to operate in the U.S. unless the Chinese firm sells them to U.S. companies.

Puck, the subscription newsletter company, on Tuesday will announce it has hired veteran journalist and TV commentator John Heilemann as its chief political columnist and partner, Puck's co-founder tells Axios.

Why it matters: Heilemann's hiring will bolster Puck's coverage of power and politics ahead of the November election. It comes as Puck pushes to expand its presence in Washington.

If bonds and currencies can be traded 24 hours a day, why not stocks? That's the question the New York Stock Exchange is asking market participants.

Why it matters: Small traders, especially ones based in Asia, would gain a certain amount of convenience. But off-hours markets can be treacherous places for investors.

AI is forcing corporate boards to change how they operate, with the most aggressive companies appointing AI bots as observers to their boards and putting tech at the center of their board strategy work.

Why it matters: The world's largest companies are increasingly obsessed with AI — mentioning it repeatedly in 2024 earnings calls — but most boards lack the expertise to effectively guide AI strategies.

A day of reckoning has come for Elon Musk, who's set to address investors and analysts about Tesla on Tuesday evening following a disastrous start to the year for the world's most valuable car company.

Why it matters: A perfect storm of slumping sales, a plummeting stock price, thousands of job cuts, internal leaks, product recalls, and a mercurial CEO has set the stage for a potentially explosive earnings call.

The city of Baltimore said the cargo ship that struck the Francis Scott Key Bridge was "clearly unseaworthy" when it left the Baltimore port last month, per court documents filed Monday.

The big picture: Baltimore's mayor and city council accused both the owner of the container ship Dali, Grace Ocean Private, and its operator, Synergy Marine Group, of being "grossly and potentially criminally negligent."