Elon Musk’s recent comments about Tesla’s future direction caused a dip in the company’s stock on Thursday. Musk mentioned that Tesla may face some challenges in the upcoming quarters as it shifts its focus from selling cars to providing autonomous ride services.
Following disappointing financial results in the latest quarter, with a 12% drop in revenue and a 16% decrease in profit, Tesla has been struggling to attract buyers, partly due to Musk’s involvement in political matters. Additionally, competition in key markets like Europe and China has intensified.
Tesla is also set to lose the $7,500 EV tax credit and will see reduced revenue from selling regulatory credits to other car manufacturers due to recent tax law changes. The company estimates that President Trump’s tariffs will result in significant financial losses.
During the earnings call, Musk shifted the focus away from car sales towards discussing robotaxis, automated driving software, and robotics as the future of Tesla. However, he acknowledged that these ventures are still a while away from contributing significantly to the company’s earnings.
Tesla has begun rolling out a paid robotaxi service in Austin, Texas, and plans to expand to other cities soon. Musk aims to make the service available to a large portion of the US population by the end of the year, pending regulatory approval.
Musk admitted that Tesla may face challenging quarters ahead due to the loss of incentives in the US. Nevertheless, he expressed confidence that Tesla’s economics will improve once autonomous driving is scaled up in the coming year.
Following Musk’s statements, Tesla’s stock fell by 8% in early trading on Thursday to approximately $305.
