Elon Musk to Address Investor Concerns Over Tesla’s Robotaxi Plans and Earnings
Tesla CEO Elon Musk is set to face investor scrutiny over the company’s robotaxi ambitions and earnings outlook as the electric vehicle maker prepares to release its upcoming quarterly earnings report. The report will offer stakeholders a chance to question Musk on Tesla’s autonomous vehicle strategy, following a recent robotaxi unveiling that left many questions unanswered.
During the brief 20-minute robotaxi event, Musk provided a limited introduction without allotting time for audience queries. This lack of engagement has fueled concerns among investors and analysts about the transparency of Tesla’s plans for its autonomous driving technology.
Much of Tesla’s staggering $700 billion valuation hinges on Musk’s vision that the company’s Autopilot software will serve as the foundation for a widespread robotaxi business. Production of the dedicated robotaxi is anticipated to begin in 2026, with an expected price point below $30,000. Musk also indicated that unsupervised operation of Tesla’s Full Self-Driving (FSD) software could start as early as next year in California and Texas.
However, skepticism persists regarding the safety and readiness of Tesla’s autonomous software. The U.S. auto safety regulator has recently opened an investigation into 2.4 million Tesla vehicles equipped with FSD software, following reports of four collisions, including a fatal crash in 2023.
Despite these challenges, Tesla reports that its cars have collectively driven over 2.57 billion kilometers using FSD. In an effort to boost adoption, the company is offering interest-free financing for customers who purchase the FSD package alongside a Model 3 or Model Y.
Competition Intensifies as Deliveries Decline
Tesla is expected to report its first-ever annual drop in deliveries, as its aging lineup faces fierce competition from more affordable electric vehicles in China and newer models from established U.S. automakers. The Chinese market, in particular, presents significant challenges with domestic brands offering competitive EVs at lower prices.
This competitive landscape has led some analysts, including those at Barclays, to suggest that Tesla should refocus on its core business fundamentals rather than the robotaxi initiative. They argue that strengthening its existing product lineup and addressing market share erosion are immediate priorities.
The upcoming earnings report is also projected to reveal a decline in profit margins on vehicle sales, primarily due to incentives offered to stimulate demand. Wall Street analysts predict an automotive gross margin of 14.9 percent for the third quarter, excluding regulatory credits, slightly above the 14.6 percent reported in the previous quarter.
Tesla has deployed strategies such as price cuts and low-cost financing, especially in China, to attract buyers, though results have been mixed. The company’s approach reflects the intensifying competition in the global EV market and the need to adapt to evolving consumer preferences.
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Musk to address investor worries on Tesla's robotaxi, earnings outlook
cgtn.com
