Latest news with #Model2
Time of India
2 days ago
- Automotive
- Time of India
Elon Musk isn't worried about Tesla's crashing EV sales — here's why he's betting big on robotaxis and ditching budget cars
Tesla's core electric vehicle (EV) business is going through a difficult phase. The company recorded a 13.5% decline in global sales in the second quarter, following a 13% drop in the first. This marks one of the toughest stretches for Tesla in recent years. Meanwhile, competitors like General Motors and China's BYD are advancing with new high-tech EVs. At the same time, the U.S. government is weighing changes to EV tax credits, and consumer interest appears to be shifting back to gasoline-powered vehicles. Still, Elon Musk doesn't appear too worried. In an April investor call, he said, 'I'd encourage people to look beyond the bumps and potholes of the road immediately ahead of us,' and urged them to 'lift your gaze to the bright shining citadel on the hill.' For Musk, this citadel seems to represent a future rooted in self-driving technology and robotics. Focus turns from Budget EV to autonomous future Tesla has moved away from plans to launch a low-cost $25,000 vehicle, commonly referred to as the Model 2. Instead, Musk is directing efforts toward developing the "Cybercab," an autonomous taxi without a steering wheel or pedals. 'I think having a regular $25,000 model is pointless. It would be silly, like it will be completely at odds with what we believe,' he said. This shift underscores Musk's evolving vision for Tesla—not just as a car company but as a tech and mobility platform. Tesla's robotaxi and humanoid robot plans now appear central to this future. Core car business still under pressure While nearly 75% of Tesla's $100 billion revenue last year came from vehicle sales, the business is showing signs of strain. First-quarter profit fell by 71%, with the company staying in the black largely due to $595 million earned through regulatory credits. Tesla executives have responded by lowering prices on existing models. 'Monthly payment is the biggest differentiator for our vehicles,' said Lars Moravy, vice president of vehicle engineering. Despite such efforts, second-quarter results expected on July 23 are projected to show a further 10% decline in sales and nearly a 20% drop in profit. Market faith in Musk remains strong Even with falling sales and profits, investors continue to bet on Musk's vision. Tesla's current market valuation is near $1 trillion. However, analysts estimate the value of Tesla's core auto business between $50 and $100 per share, while the company currently trades around $300. 'Most investors value Tesla's core auto business at between $50 and $100/share,' said Morgan Stanley analyst Adam Jonas. The gap suggests that much of the stock's value lies in belief in Musk's long-term ambitions beyond traditional cars. Internal shakeups and political drama Tesla's internal leadership has also seen recent changes. Omead Afshar, a close Musk associate who led operations in North America and Europe, has left the company. Milan Kovac, who headed the Optimus robot program, also stepped down to move overseas with his family. On the political front, Musk's $300 million support for Donald Trump's reelection campaign took a sharp turn after an online disagreement. Trump threatened potential action against Musk, saying, 'We might have to put DOGE on Elon,' and hinted at possible deportation. Robotaxis take the wheel Despite setbacks in the EV market and internal management, Musk is staying the course toward Tesla's next chapter: autonomous robotaxis and AI-driven technologies. For now, that's where his focus—and the company's future—seems firmly set.
NDTV
2 days ago
- Automotive
- NDTV
Why Elon Musk Is Unfazed Despite Tesla EV's Tumbling Sales
Tesla's core car business is sputtering, but CEO Elon Musk is unbothered. The electric vehicle pioneer reported a 13.5 per cent drop in global vehicle sales for the second quarter, one of its worst stretches in years. This follows a 13 per cent decline in deliveries during the first quarter. The company's only new model in five years, the stainless-steel Cybertruck, has received a lukewarm response in the market. Rivals like General Motors and China's BYD have gained ground with new high-tech offerings, while US lawmakers consider phasing out EV tax credits. Consumers, too, are showing signs of shifting back to gas-powered vehicles. "I'd encourage people to look beyond the bumps and potholes of the road immediately ahead of us," Musk told investors in April. "Lift your gaze to the bright shining citadel on the hill." That "citadel," for Musk, includes ambitious bets on self-driving taxis and humanoid robots. Though Tesla generated nearly $100 billion in revenue last year, as per CNBC, three-quarters of it from car sales, Musk has made clear his focus is shifting. He scrapped plans for a $25,000 budget car, the Model 2, in favour of an autonomous "Cybercab" without pedals or a steering wheel. "I think having a regular $25,000 model is pointless. It would be silly, like it will be completely at odds with what we believe," he said. Company executives have instead looked to lower prices on existing models. "Monthly payment is the biggest differentiator for our vehicles," said Lars Moravy, Tesla's vice president of vehicle engineering, as per Forbes. Still, the traditional car business, the backbone of Tesla, continues to falter. First-quarter profit fell 71 per cent, and the company only remained in the black thanks to $595 million in regulatory credit sales. Second-quarter results, due July 23, are expected to show a 10% drop in sales and nearly a 20 per cent decline in profit Despite that, investor faith in Musk's long-term vision remains strong. Tesla's market valuation nears $1 trillion, vastly above what many analysts peg the core auto business at. "Most investors value Tesla's core auto business at between $50 and $100/share," Morgan Stanley analyst Adam Jonas said as per Bloomberg. Tesla currently trades around $300. Complicating matters are Musk's ongoing political entanglements. He has spent nearly $300 million supporting Donald Trump's reelection, only to feud with him online over recent legislation. Trump responded by threatening action against Musk. "We might have to put DOGE on Elon," Trump said Tuesday, and suggested he would consider deporting him. Tesla also recently parted ways with Omead Afshar, a longtime Musk confidant who oversaw North American and European operations. Earlier, Milan Kovac, head of the Optimus robot program, resigned to be with family overseas.
Mint
2 days ago
- Automotive
- Mint
Tesla is in disarray. Musk has already moved beyond caring about cars.
The Cybertruck, Tesla's only new model in the past five years, has logged disappointing sales. Tesla sales are in a deep funk. Elon Musk insists he doesn't care. The electric-car pioneer is stuck in one of its worst sales streaks, with the company reporting Wednesday that global vehicle sales fell 13.5% in the second quarter, compared with a year ago. Vehicle deliveries also dropped 13% in the first quarter. Rivals from General Motors to China's BYD, in the meantime, have churned out high-tech vehicles, stealing market share. And Congress is preparing to pull the plug on U.S. tax credits for electric vehicles—at a time when consumers are shifting back to buying traditional cars. 'I'd encourage people to look beyond the bumps and potholes of the road immediately ahead of us," Musk told investors in April. 'Lift your gaze to the bright shining citadel on the hill." Up on that hill is Musk's promise of self-driving taxis and humanoid robots. Even though three-quarters of Tesla's roughly $100 billion in revenue in 2024 came from selling cars, Musk has been telling investors that he has shifted his focus to transforming the company with autonomous vehicles and robots. Last year, Musk froze work on a new affordable model, dubbed the Model 2, which was supposed to cost $25,000. Asked by an investor when Tesla might revive that model, Musk said the company was focused on building a version of that car, called the Cybercab, without steering wheels or pedals. 'I think having a regular $25,000 model is pointless. It would be silly, like it will be completely at odds with what we believe," Musk said. The stainless steel Cybertruck, which hasn't sold well, is the only new Tesla model in the last five years. Earlier this year, executives said they were focused on reducing prices of its current lineup. 'Monthly payment is the biggest differentiator for our vehicles," Lars Moravy, vice president of vehicle engineering, said in April. Investors are betting on Musk's vision, propping up a stock market valuation of nearly $1 trillion based on his promises. Many Wall Street analysts say the car business is worth less than $100 a share, or a third of Tesla's roughly $300 share price. 'Most investors value Tesla's core auto business at between $50 and $100/share," Morgan Stanley analyst Adam Jonas wrote in a May research note. Despite Musk's evangelism about the promise of Tesla's growth, the engine driving that transformation is a car business that is currently sputtering. Tesla's profit fell 71% in the first quarter, and it only managed a $409 million profit because the company sold $595 million in regulatory credits to other carmakers. When it reports second-quarter earnings on July 23, analysts expect a roughly 10% decline in sales and a profit drop of nearly 20%. Tesla CEO Elon Musk and President Trump touted Tesla models outside the White House in March. The problems with the car business have deepened this year, even after Musk said he was leaving the White House to spend more time on Tesla. Trade disputes have created uncertainty over the availability of rare-earth minerals from China needed to build EVs and complicated Tesla's local supply chain, which relies on parts from Canada and Mexico. And consumer demand for EVs has eroded. Overall EV sales in the U.S. fell around 7% in the second quarter, according to Cox Automotive estimates. Ford, Hyundai and Kia on Tuesday all reported steep drops in EV sales, though GM sales jumped after it released an electric Cadillac Escalade and Chevrolet Equinox EV. The Tesla brand has been affected in part by Musk's political activities, which have angered customers across the political spectrum. The Tesla CEO stepped aside from his role overseeing cost-cutting efforts at the Department of Government Efficiency at the end of May—around the time that Tesla board members reached out to executive search firms and some pressed the longtime leader to spend more time at the company, the Journal reported. Tesla chair Robyn Denholm later said the board had confidence in Musk and its growth plan. The world's richest man hasn't been able to stay out of politics, after spending nearly $300 million to help get President Trump elected. He has twice feuded with Trump on social media in recent weeks, sparring over the Republican's signature 'big, beautiful bill."Musk criticized the legislation this week, saying it was fiscally irresponsible and threatening to start a new political party to challenge congressional Republicans who vote for it. Trump responded with his own threats to use the power of the federal government to punish his former adviser. On Tuesday, Trump told reporters, 'We might have to put DOGE on Elon," and, when asked, said he would consider deporting Musk, a naturalized U.S. citizen who was born in South Africa. There also has been turmoil in Tesla's executive ranks this year. Last week, Tesla parted ways with Omead Afshar, a key lieutenant and confidant of Musk. Afshar had overseen sales and manufacturing in North America and Europe since last fall. He will be replaced in part by Tom Zhu, who had previously relocated to China to help the company catch up with the competition in Asia. A few weeks earlier, Tesla lost the head of its Optimus robot program, Milan Kovac, who said he stepped down so he could spend more time with his family overseas. Musk, meanwhile, has been focused on the rollout of a robotaxi service in Austin, Texas. On June 22, the day of the launch, he was pictured celebrating with the robotaxi team around a conference table covered with pizza boxes and Diet Coke. Unlike with Tesla's EV business, Musk isn't the pioneer on self-driving cars and is seeking to catch up to Alphabet's Waymo, which already has hundreds of robotaxis operating in multiple cities. Musk has said the program could one day add $5 trillion to $10 trillion to Tesla's market cap. Last week the company showed off another new trick when the first Model Y autonomously delivered itself from Tesla's Austin factory to a customer's home about 30 minutes away. The Tesla boss said he expects there to be hundreds of thousands of Teslas driving fully autonomously on roads in the U.S. by the end of 2026, many of which would be personally owned vehicles. In his vision, drivers will one day be able to lease their cars to other riders on the robotaxi network, much like Uber or Airbnb. The vision was on full display in Tesla's recent impact report, in which the company demonstrated a Richard Scarry-esque town where autonomous vehicles zipped around a solar-powered city, and Optimus robots pushed children in strollers and helped people carry the groceries. One image showed a robot watering a house plant while a family plays games in the living room. Inside the report was a new promise for how robotaxis and Optmius fit into Tesla's mission: 'We believe autonomy will save lives, time and money while improving quality of life for everyone." A photo from the Tesla Impact Report shows an Optimus robot watering houseplants. Write to Becky Peterson at and Sean McLain at
Yahoo
23-06-2025
- Automotive
- Yahoo
Argus Was Wrong About Hitting the Brakes on Tesla Over Musk-Trump Fallout
On June 9, Argus Research downgraded Tesla (NASDAQ: TSLA) from Buy to a cautious Hold, despite keeping a long-term Buy outlook. The firm acknowledged Tesla's sheer weight in the U.S. EV market, which still commands around half the market as of late 2024, and its nearly trillion-dollar valuation. But lately, the stock hasn't been moving in step with its usual. At the heart of the issue was Elon Musk's political fallout with Donald Trump. Things got messy after Musk criticized a congressional spending bill, which led the President to suggest Musk's outrage stemmed from the bill axing EV tax credits. The noise wasn't just political, it affected the brand and stock alike. Tesla's Q1 2025 results came in soft, and added fuel to Argus' downgrade decision. Still, the firm expected Tesla to weather the global EV turbulence. The upcoming Model 2, Tesla's promised budget option, along with AI ventures like Cybercab and the Optimus robot, may give the stock a lift, at-least in the short term. Yet Argus pointed to a persistent drag: Musk himself. His high-profile feuds and increasingly divisive public image are turning off portions of the market. Cybertrucks piling up without buyers is one indication of that. Even so, Argus stuck by its broader faith in Tesla's future. The company remains the rare EV maker with real profits, and it's still pushing into energy storage, self-driving tech, and robotics. TSLA shares returned around 20% since Argus' report. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Auto Blog
05-06-2025
- Automotive
- Auto Blog
New Report Highlights ‘Hidden Truth' Behind Tesla's Vanished $25K EV
Elon Musk denied Tesla was cancelling its $25k EV before later confirming the news was true—but the automaker's executives are said to have known all along. Elon Musk's denial of Tesla ending its $25k EV project divided the automaker's executives, report states Company documents and three people familiar with the matter say that Elon Musk raised significant concerns among some Tesla executives when he denied rumors of the automaker canceling its $25,000 electric vehicle (EV) project after the initiative was known as dead within the organization for weeks. On April 5, 2024, Musk posted on X, formerly Twitter, 'Reuters is lying (again),' after the publication reported Tesla's affordable EV, nicknamed the Model 2, as canceled. Reuters's Model 2 report triggered Tesla stock declines, but those losses didn't extend beyond 6% after Musk's denial on X. Musk reversed course months later during Tesla's Q3 earnings call in October, saying: 'Basically, having a regular $25K model is pointless. It would be silly. It would be completely at odds with what we believe,' according to Road & Track. The new Reuters report claims executives not only knew that Tesla was pivoting from the Model 2 weeks before Musk denied the project's cancellation, but also expected the robotaxi to take its place. 2025 Ford Maverick: 4 reasons to love it, 2 reasons to think twice Watch More Tesla badge — Source: Getty Some confused executives asked Musk whether he had changed his mind about ending the Model 2 initiative, to which the Tesla CEO is said to have replied that the project was still over. Other Tesla executives grew concerned about how investors and suppliers would react given their expectation of a new, more affordable vehicle, and feared the denial would hurt Tesla's sales since some were delaying purchases in hopes of a $25,000 EV. The Securities and Exchange Commission (SEC) might even view the statement as misleading investors about a future project that was part of the company's forecasts. Musk already settled with the SEC in 2018 for $40 million over a social media post, which the SEC claimed misled investors into thinking the billionaire would take Tesla private. Still, Musk's public denial didn't bother all Tesla executives, as some cited the automaker as considering various strategies for low-cost EVs over the years. Autoblog reached out to Tesla for comment but didn't receive a response. Tesla's new plans for more affordable EVs Earlier this year, Tesla confirmed its updated approach of using pre-existing model platforms to accelerate the release of new vehicles, including affordable cars, one of which was supposed to be a cheaper version of the Model Y, nicknamed E41, and the other being a stripped-down Model 3. However, the stripped-down Model Y will cost more than the originally planned $25,000 price tag, and Reuters's three sources state its US launch is being delayed with an updated release target of late 2025 or early 2026. Reliable reports haven't yet emerged about a stripped-down Model 3's production timeline and pricing. Late last week, a video was posted of a white Tesla SUV driving around the automaker's Fremont, California factory track with its front and rear covered, possibly indicating E41 trials. Tesla Newswire reposted the footage on X. White House Senior Advisor, Tesla and SpaceX CEO Elon Musk attends a Cabinet meeting at the White House on April 30, 2025 in Washington, DC. — Source: Getty Images Final thoughts Referenced in some of our previous articles on Tesla, Autoblog interviewed viral YouTuber and mechanic Scotty Kilmer, who seemed to sum up Musk's decision to publicly deny the Model 2's cancellation by saying: 'Value to him [Elon Musk] is stock market value. Stock market value isn't real value. It's pumped-up stuff. It used to be that the stock market was an investment. It isn't anymore. It's just outright riverboat gambling. His [Elon Musk] stock can go up billions of dollars or go down billions of dollars with whatever he says.' Since Musk's denial of the Model 2's end stopped a stock slide, it seems the Tesla CEO's public statement prioritized damage control instead of buyer and investor transparency. About the Author Cody Carlson View Profile
