SoylentNews is people
SoylentNews
Our own anonymous AC has found the following story:
MotorTrend reviews the recent Tesla earnings call, where Musk ended by saying that the new lower cost Tesla will be a stripped version of the Model Y SUV -- rear drive only, spartan interior, smaller (and/or lower cost chemistry) battery, etc.
Sales and earnings haven't looked good this year, I wonder if this will be enough to bring people back to Tesla stores after Elon's time in Washington DC?
While not mentioned in the article, I also wonder how current Model Y owners will feel about their neighbors' ability to get a car that looks the same, without paying the Tesla luxury car price?
The story ends with other Tesla news:
The cheap Tesla news is the big headliner of the earnings call, but there were plenty of other interesting tidbits. Per usual, Musk and Tesla championed autonomy and Tesla's nascent robotaxi service. The automaker plans to expand the size and, well, suggestive shape[*] of its robotaxi service's operating area in Austin, Texas, while also eyeing San Francisco as its next location. Robotaxis are apparently already testing in the bay area, as well as Arizona and Florida. There is also the goal of reducing the cost-per-mile of robotaxi service once the Cybercab is out in the wild. Standard Tesla robotaxi vehicles will remain more expensive than Cybercab, but it will also be built differently from regular Teslas, with longer-life tires, a plusher ride, and a much lower top speed. Tesla also expects its robotaxi service to grow much larger in 2026 and "have significant impact" on Tesla's otherwise poor financials in Q2 2025—auto revenue is down by 16 percent, year-over-year, while income from all operations are down by 42 percent, year-over-year. On top of the robotaxi fleet expansion, Musk stated that he's confident that autonomous vehicle deliveries will also expand with Bay Area driverless deliveries starting by the end of this year.
Tesla's woeful financials in part come down to the upcoming revocation of the Federal EV tax credit, tariffs impacting materials cost, and the revocation of different tax credits impacting Tesla's energy storage business. Surely, Musk's polarizing foray into politics and government is having an impact on sales, too, giving some would-be buyers pause. Musk seems to acknowledge the issue, even admitting that he's worried about being ousted as the CEO, mentioning "activist shareholders" pulling a vote to remove him. With Tesla's recent quarter being its worst since 2021 and Q1 2024, there's plenty for Musk and the company to worry about.
[*] https://www.teslaacessories.com/blogs/news/tesla-expands-robotaxi-service-area-in-austin-texas spoiler, on a map it looks like a dick...
(Score: 5, Insightful) by corey on Saturday July 26, @03:18AM (3 children)
I wonder if Elon can muster the ability to see beyond his ego that he is the main reason for falling sales. If he realised that walking away from the business might boost sales, it’d be surprising. I know people who would buy a Tesla but are concerned about it being keyed or kicked, plus they don’t wanna give money to him. In fact if I was in the market for an EV then I’d definitely consider one, sans Elon. He’s really just a poison on the brand right now.
I also hear that the interior of a Tesla (dunno which model, maybe all) is a bit cheap feeling already. So if this new cheaper version has even cheaper interior, that can’t be good. Most new cars these days have so much fancy soft materials, leather, stitching, solid backing and structure and sound absorbing material. So there’s a bit of competition in that space. My 2014 ute has hard plastic everything and bland style. But it’s always covered in a layer of dust anyway. Can barely see the floor from all the crap in there. I wouldn’t want a new car with the fancy interior.
(Score: 2) by JoeMerchant on Saturday July 26, @05:56PM (2 children)
Whether he can see it or not, the board can. Question is: will the board take the necessary actions to preserve shareholder value?
> the interior of a Tesla (dunno which model, maybe all) is a bit cheap feeling already
My impression is that Tesla is ignoring a pile of lessons learned throughout the auto industry, trying to "do it differently" and as such are repeating a lot of old mistakes, especially in the Cybertruck.
If this new model Y were cheap enough, I might consider it, but doubt that my consideration would go very far... little things like door handles that don't work when the battery is dead are a non-starter for me.
> I wouldn’t want a new car with the fancy interior.
My wife bought a new pickup truck in 1999, one of the main features we both wanted was the no-carpet rubber floor mat. We finally replaced it with a 2019 model in 2023, a key selling point of the replacement was the rubber floor mat.
🌻🌻🌻 [google.com]
(Score: 3, Funny) by number11 on Sunday July 27, @12:52AM (1 child)
Most corporate boards are lapdogs of the CEO. This particular board is friends & family.
I expect they'll be right on top of the problem, wagging their tails.
(Score: 2) by JoeMerchant on Sunday July 27, @01:08AM
The shareholders really should get some kind of representative vote. Like: six board members, biggest shareholders representing 1/6th of outstanding shares get to elect one board member, on down to the smallest shareholders representing 1/6th of outstanding shares get to elect a board member of their own... But without even reviewing the laws, I can predict that Delaware has no such provisions...
🌻🌻🌻 [google.com]