Tesla is changing course and emphasizing developing its self-driving Robotaxi program more than creating a new, more affordable electric vehicle.
While Tesla has spent substantially on autonomous driving technologies for years, its primary business-selling electric vehicles-has been little affected. The Model Y, recently named the best-selling automobile worldwide, serves as the company's key revenue engine.
Analysts predicted Tesla would extend its electric car selection to capitalize on this trend. Tesla's attention has switched to the Cybertruck, expected to produce 250,000 units annually, leaving a "gap in growth waves" for the corporation.
Previous reports suggested Tesla would launch two vehicles on a new "unboxed" manufacturing platform: the "$25,000 Tesla" or "Model 2" and the Robotaxi, a self-driving ride-sharing car.
What Happened?
According to Electrek, Tesla CEO Elon Musk has delayed the more affordable EV in favor of the Robotaxi program codenamed NV9. Elon Musk may disagree with "canceled," but insiders say the NV9 development is on pause while Tesla prioritizes self-driving technologies. These sources say Musk prioritized the NV9 program and the Gigafactory Texas expansion for the next model in December 2023. However, recent events have resulted in the defunding of the project.
This move gambles on Tesla's self-driving technology, per analysts. Without a new growth-oriented EV program, Tesla's future depends on developing and implementing Robotaxi technology.
Musk committed to investing "several billion dollars" in NVIDIA's computer capacity to train Tesla's self-driving system this year, highlighting this strategic change. Tesla is also expected to finish a large data center at Gigafactory Texas to teach full self-driving technology by August, weeks before the robot's launch.
The EV maker's shift in strategy comes after Tesla CEO Elon Musk announced a company-wide reorganization that will lay off a large number of employees in an internal email.
The memo says Tesla would cut its worldwide staff by "more than 10%," possibly affecting over 14,000 people based on the anticipated 2023 headcount of 140,000, per an previous TechTimes report.
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(Photo : Kevin Winter/Getty Images)
Elon Musk attends the 10th Annual Breakthrough Prize Ceremony at Academy Museum of Motion Pictures on April 13, 2024 in Los Angeles, California.
Tesla's Recent Struggles
Recently, Tesla revealed its first year-over-year sales dip in three years and a wider reduction in electric vehicle demand. Musk cautioned investors that 2024 sales growth may fall short of the company's 50% forecast. Tesla's Model Y and Cybertruck are reaching their fourth year without upgrades.
Elon Musk argues in the email that layoffs are important to save costs and boost productivity. He concedes that the company's fast development has caused an overlap in responsibilities and functions.
Tesla had to decrease prices on its most popular models due to rising financing rates and worldwide competition, despite a record 1.8 million EV shipments in 2023. Recent rumors imply the corporation may have shelved or postponed plans for a cheaper electric car in favor of a platform for a self-driving robotaxi, scheduled for introduction on August 8th.
The conflict on the Red Sea shipping route and attempted arson at one of Tesla's European sites had slowed its EV production.
Moreover, various sources recently reported a delay in Tesla's scheduled Cybertruck deliveries. Tesla canceled many customers' deliveries this weekend, according to discussions on Cybertruck Owner's Club forum and other platforms.
Online forum users believe a lubrication issue with the accelerator pedal may cause slippage that led to the Cybetruck delivery delay issue.
Tesla apologized and rescheduled impacted customers' delivery appointments due to the vehicle's preparation delay. Once Cybertruck deliveries resume, the corporation promises to contact them again.
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