Tesla has reversed waning investor confidence — for now — even as specifics about its future product lineup remain lacking.

Why it matters: The wider electric vehicle transition is intertwined with Tesla, the world's largest seller of battery-powered cars, Ben writes.

• And as CEO Elon Musk never stops emphasizing, Tesla is all in on autonomous vehicle tech and AI.

Driving the news: The stock, which has tumbled all year, is up 11% in post-market trading after Tesla announced plans to accelerate new model launches — including a cheaper car.

Yes, but: Tesla first quarter profits dropped 55% from the same period a year earlier.

• The bad quarter was expected after Tesla revealed a delivery slump weeks ago, so here's the news and vibes from yesterday's earnings report and analyst call:

💵 A cheaper model is still happening — apparently. The earnings deck says it's among the products arriving before the second half of 2025.

• But Musk did not repeat plans for a $25,000 model, or offer a price point.

👨‍🏭 Musk insisted Tesla remains his priority. His focus on X and other ventures has been among investor concerns.

• "Tesla constitutes the majority of my work time," Musk said.

🧠 He really wanted to discuss autonomy and AI. He wants Tesla to be viewed as a cutting-edge tech company.

• "We should be thought of as an AI robotics company." Valuing Tesla as an automaker is "fundamentally" the "wrong framework."

📈 Q1 was an aberration, Musk insists. He talked up specific logistical problems that hurt deliveries.

• "I think we will have higher sales this year than last year."

🔋 Look for more energy storage growth. Margins in Tesla's energy business have reached nearly 25%, CFO Vaibhav Taneja said.

• He expects the division to grow at least 75% this year, and will "begin contributing significantly to our overall profitability."

What's next: All eyes are on Q2 deliveries — and then the promised Aug. 8 robotaxi reveal.

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According to a new analysis, the South and Southeast have experienced the most extreme weather-related power outages during the past two decades, Andrew writes.

Why it matters: The electrical grid is under increasing strain as climate change raises the frequency and severity of extreme weather events, from heat waves to wildfires.

• Outages, and lengthy restore times, can cost the economy billions of dollars and lead to loss of life.

Zoom in: Extreme weather accounted for about 80% of all major U.S. power outages from 2000 to 2023, the nonprofit research and communications group Climate Central reports.

• Such outages are defined as affecting at least 50,000 homes or businesses, or cutting service of at least 300 megawatts.
• The majority of weather-related outages are due to severe weather like major thunderstorms, followed by winter weather and tropical storms and hurricanes.
• The report notes hurricanes can cause long-lasting outages, accounting for most of these types of outages through 2022.

The intrigue: Wildfires and heat waves, two of the hazards most clearly linked to human-caused climate change, are becoming more problematic, Climate Central found.

• Extreme heat accounts for a smaller share of outages but creates acute public health hazards when it does occur.
• And wildfires have accounted for about 2% of weather-related outages during this period, with more than half of these instances occurring during the past five years.

What's next: With the increasing recognition that America's power capacity has to grow to support generative AI and other high-tech applications, utilities are rethinking their architecture and upgrades schedule.

• In turn, this may lead to innovations that harden the grid against extreme weather events.

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Weather-related power outages are increasing in frequency, Climate Central found, Andrew writes.

• The U.S. saw about twice as many weather-related outages during the past decade than during the first 10 years analyzed, the group found in its new report.
• Driving factors include climate change-related upticks in extreme weather, America's aging and increasingly vulnerable grid, and population growth.

💵 The Energy Department finalized a $362 million loan for a Texas factory that will produce wiring systems used in EVs, Ben writes.

• The big picture: CelLink's plant is expected to produce enough lightweight harnesses for roughly 2.7 million EVs annually, the department said.
• Why it matters: It helps President Biden's target for EVs making up 50% of car sales by 2030, Deputy Energy Secretary David Turk told reporters.
• What's next: He said wiring harnesses are mostly manufactured overseas today. The Georgetown, Texas plant will create over 1,200 permanent jobs, per DOE.

🗓️ The Interior Department this morning outlined plans for up to 12 offshore wind lease sales through 2028.

• Why it matters: The 5-year plan shows Interior believes — or at least hopes — that large energy companies will remain interested in major projects despite recent setbacks.
• What's next: The sales are slated for the Atlantic and Pacific coasts, Gulf of Mexico, and, late in the schedule, an unnamed U.S. territory and Hawaii.

🤝 U.S. dealmaking among oil and gas drillers hit $51 billion in Q1 2024 after a record 2023, Ben writes.

• Why it matters: Per new data from the analytics firm Enverus, there's a musical chairs-like scramble for remaining high-quality shale acreage. Diamondback Energy's $26 billion deal for Endeavor Energy Resources led the pack.
• What's next: Enverus sees a slowdown looming, noting activity already lost momentum in March. They also predict companies will look beyond the Permian Basin to Texas' Eagle Ford and Oklahoma's Scoop-Stack play, citing "higher fragmentation" and lower prices.

🐄 TotalEnergies and BlackRock-owned Vanguard Renewables unveiled a joint venture to develop U.S. renewable gas projects.

• The big picture: They plan to start constructing 10 projects over the next year and may invest in dozens more. The technology converts food waste and dairy manure into gas.

⚡ An Energy Department advisory panel backed by oil majors says Congress should create a "low-carbon intensity" standard to build a thriving U.S. hydrogen industry, Axios Pro's Jael Holzman was first to report.

• Why it matters: The National Petroleum Council recommendations could tee up future debates on Capitol Hill — and come as oil companies see hydrogen as a way to diversify.
• The big picture: Their report says current policies, such as the IRA and the hydrogen hubs program, improve project economics, but are "insufficient" to drive down costs for some industrial work.
• Go deeper: Unlock the whole story — and a steady diet of scoops and smart analysis — by talking to our sales team about Axios Pro: Energy Policy.

A new website tracks global progress — or lack thereof — toward consensus targets from last year's UN climate summit in Dubai, Ben writes.

Why it matters: The International Energy Agency site provides one-stop-shopping for keeping tabs on pledges around renewable power, efficiency, phasing down coal, cutting methane, and more.

• It's one outcome of cooperation between IEA and the UN's climate branch.

Catch up quick: COP28 endorsed tripling renewable energy capacity and doubling annual efficiency improvements by 2030, and offered a first-time (albeit vague) pledge to move away from fossil fuels.

• The new site tracks these and a half-dozen other pledges issued or re-affirmed at the summit.

What's next: IEA plans to update the page regularly as more data comes in.