In a bid to shore up investor confidence amid disappointing quarterly earnings, Tesla CEO Elon Musk is doubling down on his vision for a future dominated by self-driving technology and Robotaxis, according to CNBC.
In the first quarter, Tesla reported weaker-than-expected earnings and revenue, with sales experiencing their lowest year-over-year decline since 2012, per VCPost. Specifically, revenue fell by 9%, marking the worst decline since 2012, while auto sales dropped by 13% compared to the same period in 2023. Free cash flow also turned negative during this period.
However, Musk remains undeterred and underlined Tesla's trajectory toward autonomy and its potential to revolutionize transportation through AI software.
Musk's ambitious promises also include introducing the CyberCab Robotaxi and developing a humanoid robot named Optimus.
"No matter what, even if I got kidnapped by aliens tomorrow, Tesla will solve autonomy, maybe a little slower but it would solve autonomy for vehicles at least," Musk said
Both of these have sparked both optimism and skepticism among investors and analysts. In fact, as of the latest update, Tesla's stock is trading at $16.20, reflecting an increase of $11.20 (+11.20%).
Critics of Elon Musk's Autonomous Driving Projects
Elon Musk's enthusiastic pursuit of cutting-edge technologies has undoubtedly contributed to the rise in Tesla's stock value.
However, there are concerns about whether these futuristic projects align with Tesla's primary business goals and if they are realistically achievable.
Musk's efforts to gain more control over Tesla's AI and robotics initiatives are met with cautious optimism from investors. In response, he stated, "I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control."
Investors are hopeful that Tesla and Elon Musk will fulfill their ambitious plans.
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