Axios Closer

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Tuesday ✅.

Today's newsletter is 698 words, a 2.5-minute read.

🔔 The dashboard: The S&P 500 closed up 1.2%.

  • Biggest gainer? Globe Life (+14.1%), said it is "currently not aware" of the government contemplating any legal proceedings stemming from the DOJ probe into short-seller fraud allegations, and disclosed the hiring of an external audit firm to investigate the the claims.
  • Biggest decliner? LKQ Corp. (-14.9%), the aftermarket auto parts distributor, disappointed investors with first-quarter results.

1 big thing: Tesla says new models coming

Illustration: Annelise Capossela/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.

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.

Yes, but: After a recent Reuters report that the company had canceled the development of an affordable vehicle dubbed the Model 2 — a report CEO Elon Musk denied — Tesla today said it's moving faster on new vehicles.

  • "We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025," Tesla said.
  • These new vehicles, it said, include "more affordable models."

Tesla's share price was up over 11% in after-hours trading.

What we're watching: Musk will address investors, analysts and media during an earnings call at 5:30pm ET.

2. Charted: Repair costs

10-year car maintenance and repair cost, by brand
Data: Consumer Reports; Note: Cost rounded to nearest thousand dollars; Chart: Jacque Schrag/Axios

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.

By the numbers: Tesla vehicles cost an average of $4,035 in maintenance and repair bills in their first 10 years, besting the second place brand, Buick, by $865, according to Consumer Reports.

  • Land Rover ($19,250) and Porsche ($14,090) were the most expensive.

3. What's happening

📸 Adobe will incorporate text-to-image capability directly into Photoshop. (Axios)

📃 The FTC banned noncompete contracts for most workers that restrict them from joining rivals. (Axios)

4. Learnings from earnings

Illustration: Natalie Peeples/Axios

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%)

🛻 GM: The automaker raised its 2024 profit outlook as it benefits from renewed interest in traditional gas-powered trucks. (+4.4%)

🥣 PepsiCo: The drink-and-snack company's Quaker Foods unit suffered a sharp drop in revenue and earnings after a recall due to possible salmonella contamination. (-2.9%)

5. Women's sports, we can hear you now

Illustration: Aïda Amer/Axios

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

The big picture: Money is pouring into women's sports, including through new deals and partnerships.

Between the lines: The Women's Sports Audio Network, which will be free, is set to include podcasts and sports reports and to feature athletes' stories on and off the field.

  • "This partnership effectively moves the coverage of women's sports from 15% to 90% overnight through the power of audio," Laura Correnti, founder and CEO of Deep Blue, said in an announcement.

Go deeper: Correnti announced the launch at the TN50: The Business of Women's Sports Summit, an event produced by Axios and Deep Blue.

6. What they're saying

"It's not like life is going to be hunky-dory forever."
— Google search boss Prabhakar Raghavan, telling workers in a private meeting that they need to move faster to improve the service as competition intensifies, per CNBC.

Today's newsletter was edited by Pete Gannon and copy edited by Carlos Cunha.

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