Tesla's Transition to Self-Driving: A Rough Road Ahead?
Tesla shares plummeted as CEO Elon Musk warned of tough financial quarters ahead, focusing on a future with self-driving cars instead of traditional sales. Amid declining revenue and profit, Tesla grapples with losing EV tax credits and increased tariffs impacting costs. Musk is focused on robotaxi services for financial recovery.
Tesla's shares nosedived after CEO Elon Musk cautioned about upcoming challenging financial quarters as the company pivots from selling cars to providing self-driving rides.
The electric vehicle giant's recent financial report revealed a 12% drop in revenue and a 16% fall in profit, as potential customers were deterred by Musk's political stances and intensified competition in Europe and China.
Tesla is also grappling with the loss of a USD 7,500 EV tax credit and diminished regulatory credit sales due to new federal tax laws, as well as substantial tariff costs under the Trump administration. While Musk emphasized the future of robotaxis and automated driving, he acknowledged that these ventures are yet to significantly impact Tesla's financial performance.
(With inputs from agencies.)
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