When
Tesla
releases
its
first
quarter
earnings
this
afternoon,
the
company’s
CEO
Elon
Musk
will
field
the
usual
questions
about
new
products,
new
factories,
and
progress
toward
its
futuristic
vision
of
self-driving
cars
and
robot
workers.
But
Musk
will
also
face
increasingly
urgent
questions
about
its
current
state
of
affairs
—
and
why
everything
seems
to
be
going
to
shit.
Earlier
this
month,
the
company
reported
its
first
year-over-year
sales
drop
in
four
years,
a
sign
of
rougher
waters
ahead.
Tesla’s
stock
has
fallen
more
than
40
percent
since
the
start
of
the
year,
including
a
13
percent
drop
in
the
last
week.
The
company
laid
off
over
14,000
employees
last
week,
10
percent
of
its
global
workforce
— which
could
end
up
being
closer
to
20
percent
when
all’s
said
and
done,
according
to
Bloomberg.
Today’s
earnings
report
is
expected
to
include
Tesla’s
lowest
profit
margins
in
six
years,
a
sign
that
rampant
price-cutting
continues
to
exact
a
toll.
Much
hope
was
pinned
on
the
company’s
forthcoming
affordable
EV,
the
so-called
$25,000
“Model
2.”
But
then
Reuters
reported
that
Musk
has
canceled
the
project,
preferring
to
sink
the
company’s
resources
into
a
fully
autonomous
robotaxi.
(Musk
called
the
Reuters
report
“lies”
but
has
yet
to
affirm
any
support
for
the
low-cost
model.)
“Not
quite
betting
the
company,
but
going
balls
to
the
wall
for
autonomy
is
a
blindingly
obvious
move,”
Musk
wrote
on
X,
in
response
to
a
fan
account
pretending
to
be
in
disbelief
that
he
would
“bet”
the
company
on
robotaxis.
“Everything
else
is
like
variations
on
a
horse
carriage.”
Layoffs,
diminishing
sales,
a
cloudy
future,
a
distracted
boss
—
all
of
these
factors
seem
to
signal
a
company
in
dire
straits.
Even
the
Cybertruck,
Tesla’s
great
stainless
steel
hope,
is
being
recalled
over
a
faulty
accelerator
pedal.
Much
like
its
polarizing
electric
truck,
Tesla
seems
to
be
stuck
barreling
straight
ahead,
pedal
to
the
metal,
without
noticing
that
the
road
ahead
is
under
construction.
“While
we
have
seen
much
more
tenuous
times
in
the
Tesla
story
going
back
to
2015,
2018,
2020..this
time
is
clearly
a
bit
different
as
for
the
first
time
many
long
time
Tesla
believers
are
giving
up
on
the
story
and
throwing
in
the
white
towel,”
Wedbush
analyst
and
longtime
Tesla
bull
Dan
Ives
writes.
Tesla
remains
the
world’s
most
valuable
automaker
with
a
market
capitalization
of
about
$468
billion.
It’s
still
the
biggest
name
in
electric
vehicles,
with
51
percent
share
of
the
market
in
the
US,
according
to
Cox
Automotive.
But
that’s
down
from
65
percent
in
2022,
as
more
automakers
beef
up
their
EV
lineups
with
viable
alternatives
and
Tesla’s
competition
heats
up.
But
more
models
haven’t
translated
to
more
demand.
Almost
269,000
electric
vehicles
were
sold
in
the
US
in
the
first
three
months
of
2023
— a
2.6
percent
increase
year
over
year
but
a
7.3
percent
decrease
from
the
previous
quarter,
according
to
Kelley
Blue
Book.
Price
remains
a
major
obstacles,
as
does
charging
and,
of
course,
politics.
Musk
warned
of
a
slowdown,
but
the
steep
decline
still
took
a
lot
of
people
by
surprise.
(Ives
called
it
a
“disaster.”)
Tesla’s
sales
dropped
13
percent
in
the
first
quarter,
compared
to
Q1
in
2023.
Meanwhile,
its
biggest
competitors,
like
BMW,
Mercedes,
Hyundai,
and
Kia,
saw
EV
sales
go
up
by
double
or
even
triple-digits.
Ford,
for
example,
saw
Q1
sales
of
its
battery-electric
vehicles
rise
86
percent
over
last
year,
for
a
total
of
20,223
EVs
—
although
that
number
dipped
22
percent
compared
to
the
fourth
quarter
of
2023.
“Tesla
believers
are
giving
up
on
the
story
and
throwing
in
the
white
towel”
In
China,
where
Tesla
helped
create
a
market
for
electric
vehicles,
the
company
is
now
losing
to
many
of
the
country’s
domestic
manufacturers.
Tesla
recently
announced
aggressive
price
cuts
in
China,
which
is
the
largest
EV
market
in
the
world.
And
the
company
was
briefly
dethroned
as
the
global
EV
leader
by
BYD,
which
sells
all
kinds
of
electric
models,
many
of
which
are
more
affordable
than
Tesla’s.
Part
of
the
problem
could
be
Tesla’s
lineup.
An
analysis
of
26
global
automakers
found
that
the
company
has
the
oldest
lineup
based
on
when
its
models
were
first
released.
Also,
the
company
only
sells
battery-electric
vehicles,
while
its
legacy
auto
industry
competitors
sell
a
mix
of
electric,
hybrid,
and
gas
vehicles.
Hybrids
have
proven
to
be
an
important
bridge
for
many
consumers
who
want
to
go
electric
but
have
concerns
about
making
the
switch.
But
while
current
sales
may
have
softened,
most
experts
say
that
the
future
is
unquestionably
electric.
Gas-powered
vehicles
are
a
major
contributor
to
planet-warming
carbon
emissions
and
curtailing
their
sale
would
be
an
enormous
boon
in
the
fight
against
climate
change.
And
policy
changes,
including
the
US’s
recent
adoption
of
stricter
emissions
standards,
will
push
automakers
to
go
all-electric
in
the
years
ahead.
Tesla
was
the
first
company
to
prove
there
was
a
market
for
electric
vehicles.
But
recently,
it
has
been
slow
to
innovate.
And
Musk’s
leadership
has
come
under
question
—
especially
as
he
has
acquired
new
companies
and
taken
on
new
projects,
spreading
himself
remarkably
thin
in
the
process.
Tesla’s
sales
dropped
13
percent
in
the
first
quarter,
compared
to
Q1
in
2023
And
now
the
company’s
big
bets
appear
to
be
flopping.
The
Cybertruck
rollout
has
been
marred
by
problems,
culminating
in
last
week’s
hasty
recall.
Musk
reportedly
canceled
the
low-cost
Model
2
in
favor
of
the
upcoming
robotaxi
— despite
repeatedly
failing
to
make
good
on
his
promise
for
a
fully
driverless
vehicle.
Musk
clearly
wants
to
conquer
the
world.
At
the
company’s
last
shareholder
meeting,
he
introduced
the
idea
of
a
“fully
sustainable
Earth”
and
positioned
Tesla
— and
himself
—
as
the
most
qualified
to
lead
us
there.
What
he
didn’t
introduce
was
a
new
model,
which
was
a
huge
disappointment
for
many
of
the
company’s
boosters
on
Wall
Street.
That
was
a
stark
reminder
that
for
all
of
Musk’s
bluster
and
claims
about
Tesla
really
being
an
AI
company,
it’s
still
just
a
car
company.
While
other
companies
are
pursuing
important
innovations
like
lighter,
more
powerful
batteries
and
recycling
techniques
that
can
shrink
the
auto
industry’s
carbon
footprint,
Tesla
is
putting
it
all
on
the
line
for
an
“apocalypse-proof
truck”
and
a
full
suite
of
vaporware
robots.
Oh,
and
a
$56
billion
payout
that
a
judge
rejected
and
even
the
company’s
top
investors
think
is
a
trash
idea.
Tesla’s
grip
on
the
EV
market
is
slipping.
If
Musk
can’t
articulate
a
clear
and
positive
vision
for
Tesla,
it
could
slip
even
further.
Original author: Andrew J. Hawkins
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