Tesla, led by Elon Musk, is facing a period of upheaval as it places its bets on a new initiative called Robotaxi, which aims to bring self-driving cars to the market.
Unfortunately, the company has experienced a challenging year, marked by a major drop in its stock value, declining sales, and internal changes such as layoffs. These developments have left many employees, investors, and analysts unsure about Tesla's future direction.
Earlier this year, VCPost reported that Musk was dropping the idea of low-cost Tesla models due to the increasing EV competition in China. What's next for the EV company is Robotaxi.
While Musk has a history of steering Tesla through tough times, the shift towards the Robotaxi project has raised concerns among shareholders and prompted a downgrade from Deutsche Bank.
Why Elon Musk's Fixation on Robotaxi Harms Tesla
Despite Musk's optimism about Robotaxi's potential, there are inherent risks associated with this new venture, particularly concerning regulatory approval and competition from other companies in the self-driving car space.
"Investors, particularly institutional ones, are losing patience," said Bloomberg Intelligence analyst Steve Man.
"The initial hype around Full Self-Driving and robotaxis has waned, and the pendulum has swung in the opposite direction."
It also does not help that Tesla's recent layoffs, part of a larger restructuring effort, have also faced criticism for their handling, adding to the uncertainty surrounding the company's future.
Per Yahoo Finance, the progress of Robotaxis is still a mystery. However, it is expected that Tesla's only new offering in the coming years may be the Cybertruck, an expensive and challenging-to-produce pickup truck compared to Musk's initial affordable EV models.
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