Tesla’s fourth-quarter earnings were a mixed bag, with revenue and profit falling short of analysts’ expectations. However, Elon Musk’s presentation to investors was a different story, filled with promises of growth and innovation that have left many skeptical. Despite the company’s impressive sales in the past, Tesla’s global sales shrunk 1% in 2024 to 1.79 million units, and its U.S. sales dropped by 5.6%.
Musk’s confidence in his company’s future is unwavering, but it seems misplaced. The CEO has been touting self-driving robotaxis as the key to Tesla’s success, despite the company’s struggles with “Full Self Driving.” The technology, which requires driver supervision and has led to multiple government investigations, remains unproven.
Critics argue that Musk’s focus on futuristic plans is a distraction from what works well. “Tesla’s a phenomenal business just focused on climate change – sustainable transportation and energy,” said Phil Gerber, a Forbes contributor. “The fact that it’s now advancing robotics and Cybercabs is just his pivot away because nobody wants to buy his products — because of him.”
As the automotive industry continues to shift towards electric vehicles, Tesla faces stiff competition from established brands like General Motors, Hyundai, Kia, Honda, Rivian, and Lucid. The company’s long-delayed Tesla Semi is set for release in 2026, but it’s unlikely to generate significant sales volume.
The biggest concern, however, is Musk’s reputation and the impact it has on Tesla’s brand. Interbrand’s annual survey of the world’s most valuable brands showed a 9% decline for Musk’s car company last year, and consumers are starting to take notice. A recent survey found that nearly two-thirds of potential new carbuyers say they definitely would not consider a Tesla as their next vehicle.
As Phil Koopman, an associate professor at Carnegie Mellon University, noted, “Machine learning runs out of steam before you get to common sense.” The same can be said for Musk’s confidence in his company’s prospects. Despite the short-term gains, it remains to be seen whether Tesla can sustain its growth and overcome its challenges.
Source: https://www.forbes.com/sites/alanohnsman/2025/02/01/its-never-going-to-happen-but-a-distracted-musk-should-hand-over-ceo-reins-at-tesla