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Elon Musk’s Robotaxi Dreams Plunge Tesla Into Chaos

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Elon Musk’s underlings at Tesla Inc. are accustomed to chaos. It comes with the territory of working for a chief executive who sets exacting targets and often abruptly switches directions — whose biographer describes his more intense moods as “demon mode.”

 

But even by Tesla standards, this year has been unruly. Its stock has slid more than 40% amid slumping sales, confusing product decisions and more price cuts. Its once-dominant position in China’s EV market is under assault. A visit with India’s Prime Minister Narendra Modi for an anticipated investment announcement was called off at the last minute. All the while, the board has tried to revive a $56 billion payout to Musk that a judge voided in January, on the grounds that directors had acted as “supine servants” to the CEO.

 

On Tuesday, Tesla is expected to report a 40% plunge in operating profit and its first revenue decline in four years. Musk has ordered up the company’s biggest layoffs ever and staked its future on a next-generation, self-driving vehicle concept called the robotaxi. People familiar with his directives, who asked not to be identified discussing internal deliberations, are unsettled by the changes the CEO wants to push through.

 

The idea of creating an autonomous taxi service has been kicking around Tesla for at least eight years, but the company has yet to stand up much of the infrastructure it would need, nor has it secured regulatory approval to test such cars on public roads. For the moment, Musk has put off plans for a $25,000, mass-market vehicle that many Tesla investors — and some insiders — are pushing for and believe is crucial to the carmaker’s future.

 

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Musk has signaled on his social media network that the recent moves amount to activating wartime CEO mode. He liked a post saying as much after sending a companywide email announcing that Tesla was cutting more than 10% of global headcount, which would mean eliminating at least 14,000 jobs.

 

The actual number of people ushered out may exceed 20,000, according to people familiar with the company’s planning. Musk’s reasoning, according to one person with direct knowledge of his edicts, was that Tesla should reduce headcount by 20% because its vehicle deliveries dropped by that amount from the fourth quarter to the first quarter.

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For those still among Tesla’s ranks after this culling, Musk has radically altered the marching orders. The company is “going balls to the wall for autonomy,” he declared last week. The robotaxi is now taking precedence over a cheaper car he first teased four years ago, both with respect to setting timelines for prototypes and arranging production capacity, one person familiar with the planning said.

 

Musk has talked a big game about autonomy for over a decade, and has convinced customers to pay thousands of dollars for a product Tesla has marketed as Full Self-Driving, or FSD. The name is a misnomer — FSD requires constant supervision and doesn’t render vehicles autonomous — but Musk has repeatedly predicted it’s on the verge of measuring up to the branding. “I’m the boy who cried FSD,” he said in July.

 

Musk and top engineers are particularly bullish about a major change in how FSD now works. A recently released version is the first to take a new approach to using raw camera footage to produce actions that drive the vehicle, Ashok Elluswamy, a director of Tesla’s Autopilot program, said on X last month. This should lead to “unprecedented progress,” he wrote.

And he's still asking to be paid 56 billion 

Low energy Don. Sad!

Why would he need a bonding company then? 🤔

11 minutes ago, EmirOfShmo said:

Anybody have a twitter link to follow the trial?