"Every brilliant idiot eventually flies too close to their own sun." - Futurist Jim Carroll
In its most recent earnings call, Tesla essentially announced that it was giving up on the automotive industry.
The graph tells you everything you need to know
This is what happens when you link a once-powerful brand to a toxic message; a once-revered founder becomes erratic and hateful; and a once innovation-rich organization becomes bled dry of its creative engine.
The facts are pretty raw as sales plummeted with buyers turning away around the world:
- Tesla reported its first-ever year-over-year revenue drop, with net income plunging 61% and automotive revenue falling 11%.
- The Model S and Model X are being cancelled, leaving only the Model 3, Model Y, and Cybertruck in production
- The Cybertruck itself is a dismal failure, a bright silver MAGA-mobile screaming out its association with the insanity of the owner
- Every country in the world saw a decrease in sales of Tesla vehicles because of Musk's involvement with a hated political brand, and none-too-subtle support of Nazi causes
- Instead of designing new models, the company is making a massive bet on two-person autonomous vehicles with no steering wheels or brakes
- The company plans to sink $20 billion into AI efforts, including a controversial $2 billion investment into Elon Musk’s separate xAI venture that might draw SEC attention
The response online is interesting, to say the least.
To start, the 'Tesla fan boys, 'as they are known, bought in, despite the negative financial results and cuts, Tesla stock surged $13 per share in after-hours trading. Those who worship at the Altar of Elon are agog with joy as he spells his dreams of selling a million humanoid robots within a year, millions of autonomous robotaxis, and other wild dreams of tomorrow. They've bought into his bold claims that the robots it is pivoting to will do surgeries within 3 years, fold your laundry, take care of senior citizens, and much more.
Grandiose bllshit, to say the least. Many of us have been here before.
To me, that's the interesting part of what has happened in the last 48 hours. From the reaction online, you now see a LOT of diehard Musk fans finally throwing in the towel, realizing that it's game over for what was once the world's greatest mass-market automotive wonder. Reading the chatter, it's evident that many are finally becoming tired of his litany of lies.
Of course, none of this comes as a surprise to those of us who saw through the deceit, the madness, and the lies of Musk years ago. He's been promising full autonomy for years, and despite wildly sophisticated software, it's still not really here. I doubt it ever will be. Yes, I do have FSD on my Model 3.
For me, it makes my ownership of my Tesla Model 3more tenuous than it has been. Aside from my bumper sticker ("All I wanted was an electric car. I didn't sign up for the rest!"), I now have to sort out what it means when a company abandons its future. Will there be parts and service in the future? Who will ever want to buy a used Tesla?
For you? Would you buy a Tesla today, when you know the company is essentially giving up on the market - and the future?
Of course, i nailed this path years ago when I wrote about what was happening with the dude. Go back and read my article on CEO hubris - it's at hubris.jimcarroll.com
All of this is really quite interesting, because in just over two weeks, I'll be speaking to te annual conference of the Canadian Association of Motor Vehicle Dealers.
With Tesla retreating from the market, an industry-wide retreat from EVs, the imminent dominance of Chinese and overseas EVs in the Canadian market, and the Trump-inspired shutdown of Canadian automotive factories by companies like GM, it's certainly an industry in turmoil!
It should be a fun keynote!
Futurist Jim Carroll took a test drive in a Rivian the other day.