Elon Musk is keeping investors' dreams of Tesla's robotaxi alive
Tesla CEO Elon Musk is pictured during a visit to the company's electric car factory in Gruenheide, near Berlin, eastern Germany, on March 13, 2024. When employees resumed work after production had to be shut down due to a suspected arson fire that caused a power outage.
Odd Andersen | AFP | Getty Images
No matter what scale you look at, Tesla's Q1 earnings report Tuesday was gloomy. The company missed estimates for revenue and bottom line. Sales fell 9% year-on-year, the worst decline since 2012. Car sales decreased by 13% compared to the same period in 2023. Free cash flow turned negative.
However, the CEO Elon Musk He downplayed most of that, suggesting investors focus elsewhere.
Rather than focusing on quarterly financials or large-scale performance; restructuring In an announcement last week, Musk reiterated his vision for Tesla as a company that builds artificial intelligence software that turns existing cars into self-driving cars, private robotaxis that benefit owners, and driverless transportation networks. expressed.
This is what Tesla Musk is selling to Wall Street, and he's telling doubters to stay away.
“If you don't believe that Tesla is the solution to autonomy, I don't think you should invest in the company,” Musk said during an earnings call. He added: “We would and we are doing that.”
Despite the disappointing results, Tesla shares soared 13% in extended trading Tuesday after the earnings report. Part of the optimism was tied to Tesla's announcement that it plans to begin producing new affordable electric vehicle models in “early 2025, if not later this year.”
Stock prices gained momentum during the earnings call as Musk steered the company toward the future. He casually mentioned that the name of the company's robotaxi, which he has been talking about for some time, would be “CyberCab.” In a shareholder document released by Tesla ahead of the conference call, the company featured a “preview of ride-hailing services on the Tesla app.”
Musk also talked about driverless networks, including: Uber using Tesla's self-driving cars.
“When the car is not moving, distributed inference could actually be performed through the hardware onboard the car,” Musk said.
Mr. Musk has been making these kinds of statements for years.
In 2015, Musk told shareholders that Tesla cars would be “fully autonomous” within three years. they didn't. Musk said in 2016 that Tesla cars would be able to drive cross-country without any human intervention by the end of 2017, but that hasn't happened yet.
And in 2019, In a telephone conversation with institutional investors That will help raise more than $2 billion, Musk said Tesla will have 1 million robotaxi-enabled vehicles on the road in 2020, each capable of completing 100 hours of driving work per week. , said it would benefit the owners.
He said at the time that robotaxis would make Tesla a company worth $500 billion. Tesla's market capitalization is currently at that level, and even surpassed $1 trillion in 2021, but the company has never been able to deliver on its driverless promise.
NBC News recently reported The company says it hasn't even sought permission to test its robotaxis in three states, including California and Nevada, where it employs thousands of people.
Separately, the California Department of Transportation Legal charges against Teslaalleged that it engaged in false advertising and marketing regarding its driver assistance systems (Autopilot and Fully Self-Driving (FSD) systems). Autopilot is standard, and FSD costs $99 per month, or $8,000 upfront. In both cases, a human driver must be at the wheel and available to steer and brake at any time. Tesla is defending the charges in court.
“The most important thing”
Musk said on the earnings call that he is confident FSD will soon be ready to expand geographically into China, pending regulatory approval. He did not mention the California regulator's lawsuit.
Musk said people who haven't tried Tesla's latest FSD update “don't really understand what's going on.”
His abuse isn't limited to cars.
At AI Day in August 2021, Musk said Tesla will develop a humanoid robot, now known as Optimus. At the time, the company didn't have a hardware prototype to display, so actors in spandex bodysuits danced on stage instead. In 2022, Tesla unveiled his prototype Optimus hardware.
Musk said Tuesday that Optimus can already perform some unspecified factory work.
A mock-up of Tesla's planned humanoid robot “Optimus” is displayed at the Seoul Mobility Show in Goyang, South Korea, on Thursday, March 30, 2023. The motor show will be held until April 9th.Photographer: SeongJoon Cho/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
“We may be able to sell it externally by the end of next year,” he said. “Optimus will be worth more than everything else combined, because if you have a sentient humanoid robot that can navigate reality and perform tasks on demand, it makes sense on an economic scale.” It removes certain limitations.”
Many investors and analysts are wondering whether all of these capital-intensive and far-reaching projects belong to Tesla.
Musk owns 20.5% of Tesla stock, or over 715 million shares. As of March 31st, According to the company Recent proxy applications. He used approximately 238.4 million of these shares as collateral to secure his personal debts. In January, he began fishing for more control over Tesla.
“We are uncomfortable with building Tesla into a leader in AI and robotics without having up to 25% voting control,” he said. I have written “Enough to have an impact, but not enough to be overturned,” he said in a post on X.
Musk has founded a new startup, xAI, to develop AI products that are comparable to those of other companies. microsoft– Supported OpenAI. Before launching xAI, he had already served as CEO of Tesla and SpaceX, and as head of technology at his company X. He is also the founder of the brain-computer interface company Neuralink and the tunneling venture The Boring Company.
Piper Sandler analyst Alex Potter asked Musk on the earnings call if he could “come up with some mechanism” to ensure the level of voting control control needed at Tesla. Your paper may be at risk. ”
“No matter what, even if tomorrow I'm abducted by aliens, Tesla will solve autonomy. Maybe a little late, but at least they'll solve vehicle autonomy,” Musk said. said. “I don't know if we're going to win with Optimus or with future products, but there's enough momentum for Tesla to solve automotive autonomy even if I'm gone.”
But he was quick to tell investors that the company needed him to achieve its noblest goals.
“If you have a super-sentient humanoid robot that can chase you indoors and you can't run away, then you're talking about Terminator-level risk, right, so there's some kind of risk to how that plays out. It's uncomfortable without a meaningful level of influence,'' he said.
Summarize this content to 100 words Tesla CEO Elon Musk is pictured during a visit to the company's electric car factory in Gruenheide, near Berlin, eastern Germany, on March 13, 2024. When employees resumed work after production had to be shut down due to a suspected arson fire that caused a power outage. Odd Andersen | AFP | Getty ImagesNo matter what scale you look at, Tesla's Q1 earnings report Tuesday was gloomy. The company missed estimates for revenue and bottom line. Sales fell 9% year-on-year, the worst decline since 2012. Car sales decreased by 13% compared to the same period in 2023. Free cash flow turned negative.However, the CEO Elon Musk He downplayed most of that, suggesting investors focus elsewhere.Rather than focusing on quarterly financials or large-scale performance; restructuring In an announcement last week, Musk reiterated his vision for Tesla as a company that builds artificial intelligence software that turns existing cars into self-driving cars, private robotaxis that benefit owners, and driverless transportation networks. expressed.This is what Tesla Musk is selling to Wall Street, and he's telling doubters to stay away.”If you don't believe that Tesla is the solution to autonomy, I don't think you should invest in the company,” Musk said during an earnings call. He added: “We would and we are doing that.”Despite the disappointing results, Tesla shares soared 13% in extended trading Tuesday after the earnings report. Part of the optimism was tied to Tesla's announcement that it plans to begin producing new affordable electric vehicle models in “early 2025, if not later this year.”Stock prices gained momentum during the earnings call as Musk steered the company toward the future. He casually mentioned that the name of the company's robotaxi, which he has been talking about for some time, would be “CyberCab.” In a shareholder document released by Tesla ahead of the conference call, the company featured a “preview of ride-hailing services on the Tesla app.”Musk also talked about driverless networks, including: Uber using Tesla's self-driving cars.”When the car is not moving, distributed inference could actually be performed through the hardware onboard the car,” Musk said.Mr. Musk has been making these kinds of statements for years.In 2015, Musk told shareholders that Tesla cars would be “fully autonomous” within three years. they didn't. Musk said in 2016 that Tesla cars would be able to drive cross-country without any human intervention by the end of 2017, but that hasn't happened yet.And in 2019, In a telephone conversation with institutional investors That will help raise more than $2 billion, Musk said Tesla will have 1 million robotaxi-enabled vehicles on the road in 2020, each capable of completing 100 hours of driving work per week. , said it would benefit the owners.He said at the time that robotaxis would make Tesla a company worth $500 billion. Tesla's market capitalization is currently at that level, and even surpassed $1 trillion in 2021, but the company has never been able to deliver on its driverless promise.NBC News recently reported The company says it hasn't even sought permission to test its robotaxis in three states, including California and Nevada, where it employs thousands of people.Separately, the California Department of Transportation Legal charges against Teslaalleged that it engaged in false advertising and marketing regarding its driver assistance systems (Autopilot and Fully Self-Driving (FSD) systems). Autopilot is standard, and FSD costs $99 per month, or $8,000 upfront. In both cases, a human driver must be at the wheel and available to steer and brake at any time. Tesla is defending the charges in court.”The most important thing”Musk said on the earnings call that he is confident FSD will soon be ready to expand geographically into China, pending regulatory approval. He did not mention the California regulator's lawsuit.Musk said people who haven't tried Tesla's latest FSD update “don't really understand what's going on.”His abuse isn't limited to cars.At AI Day in August 2021, Musk said Tesla will develop a humanoid robot, now known as Optimus. At the time, the company didn't have a hardware prototype to display, so actors in spandex bodysuits danced on stage instead. In 2022, Tesla unveiled his prototype Optimus hardware.Musk said Tuesday that Optimus can already perform some unspecified factory work.A mock-up of Tesla's planned humanoid robot “Optimus” is displayed at the Seoul Mobility Show in Goyang, South Korea, on Thursday, March 30, 2023. The motor show will be held until April 9th.Photographer: SeongJoon Cho/Bloomberg via Getty ImagesBloomberg | Bloomberg | Getty Images”We may be able to sell it externally by the end of next year,” he said. “Optimus will be worth more than everything else combined, because if you have a sentient humanoid robot that can navigate reality and perform tasks on demand, it makes sense on an economic scale.” It removes certain limitations.”Many investors and analysts are wondering whether all of these capital-intensive and far-reaching projects belong to Tesla.Musk owns 20.5% of Tesla stock, or over 715 million shares. As of March 31st, According to the company Recent proxy applications. He used approximately 238.4 million of these shares as collateral to secure his personal debts. In January, he began fishing for more control over Tesla.”We are uncomfortable with building Tesla into a leader in AI and robotics without having up to 25% voting control,” he said. I have written “Enough to have an impact, but not enough to be overturned,” he said in a post on X.Musk has founded a new startup, xAI, to develop AI products that are comparable to those of other companies. microsoft- Supported OpenAI. Before launching xAI, he had already served as CEO of Tesla and SpaceX, and as head of technology at his company X. He is also the founder of the brain-computer interface company Neuralink and the tunneling venture The Boring Company.Piper Sandler analyst Alex Potter asked Musk on the earnings call if he could “come up with some mechanism” to ensure the level of voting control control needed at Tesla. Your paper may be at risk. ””No matter what, even if tomorrow I'm abducted by aliens, Tesla will solve autonomy. Maybe a little late, but at least they'll solve vehicle autonomy,” Musk said. said. “I don't know if we're going to win with Optimus or with future products, but there's enough momentum for Tesla to solve automotive autonomy even if I'm gone.”But he was quick to tell investors that the company needed him to achieve its noblest goals.”If you have a super-sentient humanoid robot that can chase you indoors and you can't run away, then you're talking about Terminator-level risk, right, so there's some kind of risk to how that plays out. It's uncomfortable without a meaningful level of influence,'' he said.Don't miss exclusive information on CNBC PRO
https://www.cnbc.com/2024/04/24/elon-musk-is-keeping-investors-dreams-of-a-tesla-robotaxi-alive.html Elon Musk is keeping investors' dreams of Tesla's robotaxi alive
