What impacted the Q1 2024 operating expenses?

Tesla's Q1 2024 operating expenses were impacted by several key factors:

1. **Free FSD Trials and Demand Pull-Forward**: The company's decision to offer one month of free trials for Full Self-Driving (FSD) technology in the U.S. is expected to drive higher volumes in the second quarter, according to analyst Tom Narayan. This strategic move may have temporarily impacted Q1 sales and operating expenses.
2. **Gigafactory Challenges**: Downtime at the Berlin gigafactory due to supply disruptions from the Red Sea conflict and a power outage following a suspected arson attack led to production challenges. These issues may have increased operating expenses due to the need for overtime, additional resources, or temporary measures to mitigate the impact of the disruptions.
3. **Price Cuts and Rapid Depreciation**: HSBC analyst Michael Tyndall cited concerns over price cuts, rapid depreciation, and governance issues. These factors could have influenced operating expenses, as price cuts may lead to reduced profit margins and increased expenses related to marketing and sales adjustments.
4. **Legal and Governance Hurdles**: The voiding of CEO Elon Musk’s share option package by a Delaware court led to proposals to relocate the package. Such legal challenges and corporate governance issues can create uncertainty and potentially increase expenses related to legal fees, restructuring, and compliance.

In summary, Tesla's Q1 2024 operating expenses were influenced by strategic decisions like free FSD trials, production disruptions at gigafactories, competitive pricing pressures, and legal governance issues. These factors collectively impacted the company's cost structure and profitability during the quarter.