Tesla CEO Elon Musk recently spent more time discussing the company’s plans for artificial intelligence than its core automotive business during an earnings call. This shift in focus has raised questions about whether Tesla is still a car company.
Musk expressed his vision of Tesla as an AI company, with a focus on autonomy, robotics, and humanoid robots. However, investors seemed to be content with this new direction, asking few questions about the company’s plans for introducing new models or improving its automotive business.
Tesla’s sales have declined year over year for the first time in over a decade, and the company’s vehicle production and deliveries are also down. The Model 3 and Model Y, Tesla’s best-selling cars, received updates last year but still lack significant changes.
The company mentioned that it is working on a new generation of vehicles with more affordable models, but provided few details. Analysts have expressed concerns about the impact of the Trump administration’s plan to eliminate federal EV incentives and tax breaks on Tesla’s business, which relies heavily on vehicle sales.
Musk dodged these questions by focusing on the inevitability of sustainable transportation, including autonomous electric vehicles. He also downplayed the significance of the Model 2 (now called the “Model Q”) and assured investors that Tesla’s automotive business was in good hands.
The company’s stock price responded positively to Musk’s comments, but it remains unclear whether this shift will lead to significant changes for Tesla’s car business. As one analyst noted, investors seem happy with the new direction, while owners of Tesla vehicles may have different concerns.
Source: https://www.theverge.com/tesla/603393/tesla-car-company-elon-musk-ai-earnings