The Tesla revolution is underway, but watch out for the turns! Between AI, robotaxi ambitions, and the potential phasing out of the Model S and Model X, Elon Musk continues to play his tune, which seems more chaotic than harmonious. Let’s take stock of this bold transformation.
Artificial Intelligence at the Top of the List
Tesla is going through a turbulent period. Sales are not looking good, despite the end of a massive boycott related to Elon Musk’s political commitments. The brand is now facing fierce competition and an aging lineup. To counter this, Musk has announced a colossal investment of $2 billion in artificial intelligence, aimed at propelling autonomous driving technology, the much-anticipated Full Self-Driving. This project should also enable the large-scale deployment of a robotaxi service.
Speaking of robotaxis, Musk recently confirmed that the production of these vehicles without steering wheels or pedals is progressing as planned. The first units are expected to hit the streets by the end of the year, thus transforming the urban mobility landscape.
The Tesla Model Y transformed into Robotaxis
Don’t Call It Cybercab
A small twist has occurred in this futuristic quest. In 2024, a French beverage company, Unibev, registered the name Cybercab before Tesla. As a result, the manufacturer cannot use it without paying royalties. In a conference call, Musk mentioned the term robotaxi before correcting himself, stating that names like Cybervehicle or Cybercar would be more appropriate in certain states where the use of the word taxi is regulated.
To avoid being outpaced by an unlikely competitor, Tesla quickly registered trademarks related to these new names. In the business world, it’s better to anticipate than to be outdone by a company that makes pots or sports shoes… But let’s get back to the essentials.
Robotaxi Tesla Cybercab
An Evolving Offering
Elon Musk has never hidden his desire to transform Tesla from a simple car manufacturer into a mobility-related service company. Thus, alongside the development of the robotaxi, the company plans to reorganize its Fremont Gigafactory to replace the production of the Model S and Model X with that of the humanoid robots Optimus.
Tesla Model S and Model X at the Tesla Supercharging station
Production of the electric truck Semi must also be accelerated, and the highly anticipated Roadster must be launched. To achieve these ambitious goals, an investment of around $20 billion is needed by 2026, after a 2025 that could close with a “modest” revenue of $8.5 million. This announcement was well received by shareholders, causing the stock to rise by 1.8%. However, not everyone shares this optimism.
Analysts suggest that it might be wiser to continue the production of the Model S and Model X rather than halt that of the Cybertruck. By 2025, the latter may have sold only 10,000 units, while the Model S and Model X could have reached a combined total of 40,000 units. These models have significantly justified their continued presence in the lineup.
Tesla Cybertruck
The 4680 Batteries: Between Promises and Uncertainties
Alongside these changes, Tesla is also revising its plans regarding the 4680 cylindrical cells. Initially considered a true revolution for range and charging speed, they had been sidelined, as they only equipped the Cybertruck, which struggles to find its audience. However, these batteries seem to be making a comeback on certain versions of the Model Y. But again, precise details are still awaited.
Conclusion: An Uncertain but Promising Future
In summary, Tesla is navigating through troubled waters, but with undeniable determination. Elon Musk’s ambitious projects could redefine the automotive landscape, but they are also marred by uncertainties. Between the artificial intelligence shaping autonomous driving and the evolution of iconic models, Tesla’s future seems both promising and risky. It remains to be seen whether these strategic decisions will bear fruit or leave the brand trailing behind an increasingly fierce competition.
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