Tesla (TSLA, Financial) is currently experiencing a significant sales downturn. Reports suggest that Elon Musk has diverted his attention from traditional vehicles to autonomous taxis and humanoid robots. In recent quarters, Tesla's global automotive sales have declined by 13.5% and 13% respectively, marking one of its most severe sales slumps. The lack of new car models, internal management turmoil, and external challenges have contributed to Tesla's current chaos.
The competitive landscape is intensifying as companies like General Motors and China's BYD introduce advanced vehicles, gaining market share. In addition, U.S. Congress is considering ending electric vehicle tax credits, encouraging consumers to opt for conventional cars. Data indicates mounting pressure on Tesla's automotive business. Over the past five years, apart from the hyped yet underperforming Cybertruck, Tesla has not launched any new mass-market models. The anticipated $25,000 affordable car, Model 2, has been shelved, with Musk focusing resources on the Cybercab project.
To counter sluggish sales, Tesla is prioritizing price reductions over new model launches. Market conditions are challenging, with competitors like Ford, Hyundai, and Kia also reporting drops in electric vehicle sales. Analysts expect Tesla's upcoming earnings report to reveal a 10% sales decline and a near 20% profit drop. Despite this, Musk remains optimistic about the future of autonomous taxis and robots as transformative ventures for Tesla.
