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The Wall Street Publication > Blog > Politics > Musk’s robotic fantasy gained’t save Tesla buyers
Politics

Musk’s robotic fantasy gained’t save Tesla buyers

Editorial Board Published April 26, 2025
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Musk’s robotic fantasy gained’t save Tesla buyers
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Tesla’s quarterly outcomes had been a catastrophe by each metric. Internet revenue plunged 71%, automobile gross sales dropped 13%, and automotive income fell 20%. Wall Avenue anticipated $21.3 billion in income and $0.41 earnings per share; Tesla delivered simply $19.3 billion and $0.27. And that was solely due to $595 million in carbon credit—authorities lifelines for a CEO who claims to detest authorities intervention.

Tesla’s Q1 outcomes had been a catastrophe by each metric. Internet revenue plunged 71%, automobile gross sales dropped 13%, and automotive income fell 20%. Wall Avenue had anticipated $21.3 billion in income and earnings of $0.41 per share. Tesla delivered simply $19.3 billion and $0.27 per share.

And that revenue? It solely exists due to $595 million in carbon credit—a authorities program that Elon Musk pretends to hate, however fortunately cashes in. But once more, a Musk firm could be deep underwater with out public intervention.

And but … Tesla’s inventory jumped practically 10% after the earnings report. Why? As a result of buyers, like Donald Trump voters, maintain believing Musk’s lies, ignoring collapsing fundamentals in favor of fantastical guarantees.

Associated | Musk pushes dumb lies about paid protesters as Tesla gross sales collapse

On the earnings name, Musk opened with a conspiracy principle. “The protests that you’ll see out there, they’re very organized, they’re paid for,” he claimed, providing zero proof. “They are the recipients of wasteful largesse … they wish to continue receiving it.”

He additionally blamed a 50,000-car drop in deliveries on “retooling” the Mannequin Y. However final 12 months, Tesla retooled the Mannequin 3 line with out tanking gross sales, although they did expertise a drop. In Q1, the corporate truly constructed 26,000 extra vehicles than it offered. That’s a requirement downside, not provide.

None of that mattered. The inventory didn’t rally due to Q1’s collapse, it surged as a result of Musk dangled the subsequent shiny object—his promise to focus extra on Tesla and fewer on wrecking the federal government. “I think starting in May, my time allocation to DOGE will drop significantly,” he stated, pledging to reduce his anti-government antics—until the president “still needs” him.

Buyers cheered. However they shouldn’t have.

Tesla’s Cybertruck is shaping as much as be the largest auto business flop because the Edsel. Simply 46,000 have been offered since its November 2024 launch—regardless of Musk claiming 1 million reservations and constructing a manufacturing facility in Austin to pump out 250,000 a 12 months.

Anybody may’ve predicted this. The Cybertruck is a hideous, overdesigned monstrosity. Musk, who as soon as bragged, “I do zero research whatsoever,” designed it for an edgelord fever dream—not for actual folks.

And if that had been Musk’s solely blunder, Tesla is perhaps high-quality.


Elon Musk

Musk now claims that totally autonomous Cybercabs might be producing income for Tesla subsequent 12 months, and that “there will be millions of Teslas operating fully autonomously in the second half of next year.”

This is similar Musk who stated in 2019, “Next year, for sure, we’ll have over one million robotaxis on the road.”

Now we’re presupposed to imagine Tesla, which constructed 1.77 million vehicles in 2024, will manufacture multiple million robotaxis by mid-2026, regardless that large-scale manufacturing of the brand new car isn’t even scheduled to start till subsequent 12 months? Tesla did affirm on the decision that they’ll be making the robotaxis of their Austin plant, which has all that extra capability from the Cybertrucks they aren’t promoting. Sufficient capability to construct 1 million Cybercabs in half a 12 months? I’m calling bullshit on that. 

Tesla doesn’t have the factories. It doesn’t have the infrastructure. And extra importantly, it doesn’t even have the tech. “Unsupervised autonomy will first be solved for the Model Y in Austin,” stated Musk within the earnings name, admitting that this largest of technological challenges will not be but solved, one thing that he’s persistently claimed was months away from being solved for the previous decade. 

Even when they crack the tech, they’ll want regulatory approval in each metropolis they function. And who runs large cities? Liberal Democrats. The identical folks Musk has spent years mocking and antagonizing, and who could have each purpose to gradual stroll any approvals till Tesla proves its robotaxis aren’t murdering folks or destroying property. 

Musk is aware of this, so he hedged on the decision, saying, “We’ll have 10 million autonomous cars in a few years … unless blocked by regulatory situations.” Buyers apparently skipped that footnote.

Let’s assume the inconceivable occurs. Austin’s pilot succeeds. The robotaxis don’t kill anybody. Regulators wave it by way of.

Now who rides them?

Demonstrators protest against Elon Musk and Department of Government Efficiency cuts outside a Tesla dealership, Saturday, April 12, 2025, in Kansas City, Mo. (AP Photo/Charlie Riedel)
Demonstrators protest towards Elon Musk and DOGE cuts exterior a Tesla dealership, on April 12, in Kansas Metropolis, Missouri. 

City liberals? They’ve deserted Musk. They gained’t step right into a Tesla cab, preferring Waymo, Uber, or public transit.

Conservatives? They don’t want robotaxis. They’ve received pickups, SUVs, garages, and wide-open roads of their exurban and rural outposts. They’re not hailing Cybercabs to the Cracker Barrel.

Even when Tesla threads each needle, I’d be shocked to see greater than 5,000 Cybercabs nationwide by mid-2026. Extra probably? Zero—apart from a lingering pilot or two in Austin, most likely vandalized, after all. 

If robotaxis weren’t sufficient, Musk additionally hyped his humanoid robotic Optimus. “We expect to have thousands of Optimus robots working in Tesla factories by the end of this year,” he stated on the earnings name. “I feel confident we’ll hit a million units per year by 2030, maybe 2029.”

Who’s shopping for tens of millions of humanoid robots? And for what?

At a value of $20,000–$30,000, they’d want to unravel actual labor issues at scale in an economic system that’s already shifting towards automation. And never notably on this financial dystopia the place Musk is hoarding all of the wealth—and constructing robots to exchange human staff.  

On the Optimus unveiling, Musk stated the robotic could possibly be “your own personal R2-D2 [or] C-3PO,” so both a beeping trash can that fixes your spaceship, or a neurotic butler who by no means stops whining. Nice. However come to consider it, that R2-D2 bot may certainly turn out to be useful to repair these panels falling off Cybertrucks! 

But Tesla’s not even a frontrunner in robotics in a area with fierce competitors. (Right here’s some opponents which are doing the work if you wish to get creeped out.)

However Musk has large numbers in thoughts, saying final 12 months, “Tesla will be the most valuable company in the world … $25 trillion.” As CNBC famous, that’s greater than half the worth of the whole S&P 500.

At this level, Tesla isn’t a automobile firm, it’s a meme inventory. It’s science fiction with a inventory ticker and P.T. Barnum on the helm.

Tesla’s earnings name didn’t encourage confidence in EVs or power storage, neither of which might maintain the corporate’s ridiculous valuation. As a substitute, it pivoted to robotic taxis and humanoid staff—neither of which Tesla is remotely ready to ship at scale.

And if that weren’t sufficient, you continue to should take care of Musk’s noxious persona—which is perhaps Tesla’s largest legal responsibility of all.

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