Tesla sales fall for the second year in a row

(businessinsider.com)

36 points | by jrpelkonen 7 hours ago ago

30 comments

  • taylodl 6 hours ago ago

    Given that Robotaxis are currently crashing at a much higher rate than human-driven vehicles, it seems risky to put a large majority of your company's future earnings and growth in that basket.

    On the Optimus front, I spent years in manufacturing. This industry is conservative and deeply relationship driven. Plants prioritize uptime and proven reliability, and they're slow to adopt newcomers. ABB is the 800-pound gorilla here - just as they have been in the PLC space for decades. ABB's long-standing relationships and deep integration support make it incredibly hard for newcomers to gain traction. I should know - I worked for one of their competitors!

    Bottom line: Tesla's strategy hinges on two moonshots in industries where incumbents are entrenched and adoption cycles are slow. If these bets don't pay off, Tesla needs a fallback - energy storage, grid solutions, or advanced EV platforms - before the narrative collapses. They'd be wise to leverage their EV business to launch these initiatives, but waning consumer confidence and declining sales make that increasingly difficult.

    • JumpCrisscross 2 hours ago ago

      > Given that Robotaxis are currently crashing at a much higher rate than human-driven vehicles

      Robotaxis/cybercabs or whatever are not currently self driving. They’re Level 3, given the requirement for human monitors. To my knowledge, they’re doing fine safetywise as Level 3 systems.

    • peacebeard 2 hours ago ago

      > Given that Robotaxis are currently crashing at a much higher rate than human-driven vehicles

      Citation needed

      • sjsdaiuasgdia 2 hours ago ago

        https://electrek.co/2025/12/15/tesla-reports-another-robotax...

        >Last month, Tesla confirmed the fleet had traveled roughly 250,000 miles. With 7 reported crashes at the time, Tesla’s Robotaxi was crashing roughly once every 40,000 miles (extrapolating from the previously disclosed Robotaxi mileage).

        >For comparison, the average human driver in the US crashes about once every 500,000 miles.

        • peacebeard 2 hours ago ago

          Ah, I misunderstood "Robotaxis" to be referring to autonomous taxis in general, not Tesla's Robotaxi's specifically. Thank you for clarifying.

          • sjsdaiuasgdia 2 hours ago ago

            The capitalization the parent poster used on Robotaxi may have been intentional to assist with interpretation. While it can be a generic term, I believe only Tesla uses it as a brand name: https://www.tesla.com/robotaxi

            • JumpCrisscross 2 hours ago ago

              Wait, is Cybercab deprecated in favour of Robotaxi now?

              • sjsdaiuasgdia 2 hours ago ago

                I think it's this...

                Robotaxi: Tesla's autonomously driven ride hailing service. Currently using Model Y's or whatever, maybe using Cybercabs once those actually exist, maybe eventually also leveraging Tesla vehicles owned by others (lmao no one who has though that through for more than a minute or two actually wants to risk their vehicle like that)

                Cybercab: A Tesla vehicle explicitly built for the Robotaxi service, containing no driver controls whatsoever because they're expected to operate without any (local) human oversight

  • mocana 5 hours ago ago

    And how much worse would Tesla sales be without tariffs and protectionism in the U.S. and Europe? It is sad to see how Musk has pissed away Tesla's technological leadership. Those BVD and Huawei cars make the Tesla product look outdated at this point.

  • mocana 5 hours ago ago

    Elon built up Tesla, to his great credit. He also has gone out of his way to undermine the car business. He enthusiastically endorsed getting rid of the EV car credit, publicly stating that it would help Tesla. And his DOGE antics have turned the Tesla brand toxic in the eyes of so many people in the US and around the world. (I own a Tesla and had many people advice me to sell it or to put a sticker on it to avoid vandalism). There is no doubt that an important part of Elon's businesses has been setting big bold and exciting goals that attract great talent. Is there any indication that Elon has messed up talent recruitment like he messed up the Tesla brand for consumers?

    • TylerLives 5 hours ago ago

      Who is vandalizing the cars? Why doesn't police arrest them?

      • mocana 5 hours ago ago

        They have arrested some. Have heard of Teslas getting keyed too. My sense is that Elon being less in the spotlight recently has allowed some of the anger he provoked to cool off. But the brand damage, I am afraid, is permanent. https://www.wcvb.com/article/tesla-vandalism-incidents-conti...

        https://youtu.be/NpFpfOemGR0?si=eMK0rMeRrv-gIKCT

        • beardyw 4 hours ago ago

          > But the brand damage, I am afraid, is permanent

          Afraid? Are you somehow invested in Tesla?

          • triceratops 2 hours ago ago

            Yes they said they own a Tesla. They may want to sell it one day. Bad publicity hurts its value.

      • iwontberude 3 hours ago ago

        The police are underfunded and understaffed since Covid here in Silicon Valley. They won’t pursue your vandalism cases if they are just the value of a car.

  • JumpCrisscross 2 hours ago ago

    Tesla is a one-way bet on cameras-only autonomy.

    If Waymo or BYD (or Mercedes or GM, lol) get to Level 5 before 2030, and Tesla is still struggling with Level 4, the door shuts. Cameras-only autonomy starts getting banned. (We may see it sooner in e.g. China, India, the EU, and New York and California as a result of Trump-Musk politics.)

    That said, it’s a Musk company, so downside is capped. If it fell below $100 to 500bn, xAI or SpaceX will buy it.

  • epolanski an hour ago ago

    Doesn't matter, it's a cult.

    Will probably +3% tomorrow.

  • Zigurd 6 hours ago ago

    Does anyone pay for Grok? Despite claims of profitability, SpaceX still needs huge investments despite having spent all the lunar lander money without producing anything more than a render. Tesla is valued at more than the rest of the car industry put together, even after two years of stagnation and collapsing margins. Though it overlaps the AI bubble, Elon accounts for more of a general tech bubble than anyone else. Oracle might crash and burn first, but the Elonverse is the really big bubble.

    • JumpCrisscross an hour ago ago

      > Despite claims of profitability, SpaceX still needs huge investments

      This is false. SpaceX is cash flow positive.

      • Zigurd 41 minutes ago ago

        SpaceX is in fact not profitable. Depending on how you price internal transactions for manufacturing and launching Starlink satellites you can fudge the hell out of the term "cash flow positive." In fact, SpaceX continued to take outside investments in 2025.

        • JumpCrisscross 37 minutes ago ago

          > SpaceX is in fact not profitable

          This is false.

          > Depending on how you price internal transactions for manufacturing and launching Starlink satellites you can fudge the hell out of the term "cash flow positive.”

          This is nonsense. In accrual accounting, yes, there is room for fuckery. In cash accounting, you can shift cash around within the system, but the system is cash constrained.

          SpaceX is cash-flow positive.

          > SpaceX continued to take outside investments in 2025

          Sure. It raised in its Series J. It has bought back more than that total round, secondary included, in stock.

          It will probably raise massive amounts in 2026. It’s making large capital investments.

          But for a few years, it didn’t. It was largely coasting. And in those years, up to now, it’s been cash-flow positive. It could have paid a dividend if it wanted.

  • sidibe 6 hours ago ago

    No problem, Tesla is robot company now.

    • 6 hours ago ago
      [deleted]
    • jaggs an hour ago ago

      A trillion dollar one, I believe

  • hijackd_rc 6 hours ago ago

    Did they move to Texas and spend $300m getting Trump elected?

    Did they pander disrespectfully and partisanly?

    Is that selling electric cars to Republicans?

    Did they build a "cyber" puss-APC product for the wider market and then piss it away on the largest steel stamping machine in Texas, nay the world (which is a single point of failure for production and maintenance)?

    Someone should explain to them that there are less hazardous batteries than Lithium Ion.

    It's like there's a freeloading pandering narcissist who's assumed Elon's identity (because they were such a risk to other operations where there is not such accountability to a board and to the people).

    • hijackd_rc 6 hours ago ago

      What sort of a bonus does that deserve?

      • collingreen 4 hours ago ago

        If line goes up, nothing else matters.

  • belter 6 hours ago ago

    "Musk’s aerospace and defense company, SpaceX, reportedly purchased tens of millions of dollars worth of Cybertrucks in 2025."

    - https://www.cnbc.com/2026/01/02/tesla-tsla-q4-2025-vehicle-d...

    Bullish :-)

    • 3 hours ago ago
      [deleted]