Tesla CEO Elon Musk continues to promise investors that autonomy is in the company’s future even as financials deteriorate.
Tesla reported weaker-than-expected quarterly earnings and revenue on Tuesday, with sales suffering their steepest year-over-year decline since 2012.on Tuesday was dreary. The company missed estimates on the top and bottom lines. Revenue fell by 9% year over year, the worst decline since 2012. Auto sales dropped 13% from the same period in 2023. Free cash flow turned negative.
Tesla shares soared 13% in extended trading Tuesday after the earnings report, despite the disappointing results. Some of the optimism was tied to Tesla's announced plans to start production of new affordable electric vehicle models in"early 2025, if not late this year."The stock's rally picked up steam during the earnings call as Musk veered to the future. He casually mentioned that the company's robotaxi, which he has long said is coming, will be called the CyberCab.
The robotaxis would make Tesla a company worth $500 billion, he said at that time. Tesla's market cap is around that mark now and even topped $1 trillion in 2021, but the company has never managed to deliver on its driverless promises.that the company hasn't even sought permits that would allow it to test and operate robotaxis in three states, including California and Nevada, where it employs thousands of people.
Whether all of these capital-intensive and far-out projects belong at Tesla is a question that many investors and analysts are asking.. He's used around 238.4 million of those shares as collateral to secure personal debt. In January, he began angling for even more control of Tesla.-backed OpenAI. Before starting xAI, he was already serving as CEO of Tesla and SpaceX, and was technology chief at X, which he owns.
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