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Time of India
5 days ago
- Automotive
- Time of India
Tesla faces difficult road ahead as it hopes robotaxis will offset declining sales
Tesla and its CEO Elon Musk are walking an increasingly difficult tightrope as the company navigates declining electric vehicle sales and an autonomous driving business that has yet to get off the ground. On Wednesday's earnings call, Musk said Tesla is "getting the regulatory permission to launch" robotaxis in several states, including California, Nevada, Arizona and Florida. He expects operations to reach "half the population of the U.S. by the end of the year" and to roll out at scale by the end of next year. So far, though, the company is operating only a small fleet in Austin, Texas, that is not available to the general public. And getting regulatory approvals, particularly in California, is likely to prove a bigger hurdle than Musk described on the call. "Tesla cannot afford a misstep with the robotaxi service," said Camelthorn Investments adviser Shawn Campbell, who owns Tesla shares. He added that "the wheels are coming off" its automotive business, with sales declines across "almost every market." Sales fell 13% for the first half of this year, as its core EV business deteriorated due to an aging lineup and brand damage from Musk's political activism. With no affordable vehicles on the horizon until the last three months of the year and the upcoming elimination of a $7,500 U.S. tax break for EV buyers, Musk acknowledged that the company could have "a few rough quarters." "The numbers kind of speak for themselves," said Ross Gerber , CEO of Gerber Kawasaki Wealth and Investment Management and a Tesla investor. "They're bad for a growth company, which isn't growing." Tesla shares were down more than 8% in midday trading on Thursday. They have declined 24% this year and robotaxis and autonomous driving are critical to maintaining the company's roughly $1 trillion stock-market valuation. Regulatory barriers The fall in core auto sales has led to more investor scrutiny of Musk's lofty robotaxi promises. Products such as the Cybertruck have come later than anticipated, and Musk has promised every year since 2016 that driverless Teslas would arrive no later than the following year. Many questions on Wednesday's call focused on how quickly Tesla would be able to expand robotaxi services, and the regulatory hurdles that remain. Musk said he expected the robotaxi business would have a "material impact" on Tesla's business by the end of next year. In April, he said it would become material "around the middle of next year," and predicted "millions of Teslas operating autonomously" by the second half of 2026. The San Francisco Bay Area was first on Musk's list of expansion markets, but California regulators told Reuters on Wednesday that Tesla had not yet applied for permits needed to pick up and charge passengers for rides in fully autonomous vehicles. Companies need a series of permits from both the California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC) in order to test and deploy autonomous vehicles in the state. To date, Tesla only has obtained the first in a series of permits needed to launch a service, and spokespeople for both agencies said the company has not applied for the additional permits needed to test and operate autonomous vehicles. Tesla did not respond immediately to a request for comment. It disclosed in a filing on Thursday that regulators have asked for information on its robotaxi plans. Federal safety officials previously had said they were seeking information after reviewing online videos of robotaxis in Austin allegedly using the wrong lane and speeding. California has no specific time period to grant such permits, but Alphabet's Waymo, which offers autonomous ride-hailing in Los Angeles and the Bay Area, logged more than 13 million testing miles and secured seven different regulatory approvals over nine years before receiving approval to charge passengers for rides in driverless robotaxis in 2023. Tesla has logged just 562 testing miles (904 km) in California since 2016, and has not reported any autonomous-driving miles to the state in six years, according to the most recent state records. Paul Miller, principal analyst at market research and consultancy firm Forrester, pointed to Musk's comment about addressing half of the U.S. population "subject to regulatory approvals." "That caveat is an important one, as regulatory approvals take time," he said. Other markets Musk mentioned could move faster. In Arizona, a state Department of Transportation spokesperson said Tesla contacted state officials last month and had applied for permits to test and operate autonomous vehicles with and without a safety driver. The agency said a decision is expected at the end of the month. Tesla also must seek permits to operate a ride-hailing service and submit plans to the state for how police agencies can deal with their autonomous vehicles, the spokesperson said. Nevada DMV officials said they discussed the state's process with Tesla last week, but no steps have been taken, while officials in Florida did not respond to a request for comment. Some investors are also seeking more specifics about the Austin launch. Gene Munster, managing partner at Deepwater Asset Management, a Tesla investor, said he was disappointed the EV maker gave no updates on its earnings call on when the Austin service would be available to the general public or how many vehicles would be on the road. "It seemed like he wanted to kind of steer clear of really putting hard estimates out there for how things play out," Munster said. Outlook Morgan Stanley after the results predicted that Wall Street would lower forecasts in expectation of lower sales and higher costs. Musk did not mention his new political party, but his relationship with Trump has deteriorated. The president on Thursday denied that he was aiming to destroy Musk's companies. "Everyone is stating that I will destroy Elon's companies by taking away some, if not all, of the large scale subsidies he receives from the U.S. Government. This is not so!" Trump said in a social media post.
Zawya
5 days ago
- Automotive
- Zawya
Tesla faces difficult road ahead as it hopes robotaxis will offset declining sales
LOS ANGELES - Tesla and its CEO Elon Musk are walking an increasingly difficult tightrope as the company navigates declining electric vehicle sales and an autonomous driving business that has yet to get off the ground. On Wednesday's earnings call, Musk said Tesla is "getting the regulatory permission to launch" robotaxis in several states, including California, Nevada, Arizona and Florida. He expects operations to reach "half the population of the U.S. by the end of the year" and to roll out at scale by the end of next year. So far, though, the company is operating only a small fleet in Austin, Texas, that is not available to the general public. And getting regulatory approvals, particularly in California, is likely to prove a bigger hurdle than Musk described on the call. "Tesla cannot afford a misstep with the robotaxi service," said Camelthorn Investments adviser Shawn Campbell, who owns Tesla shares. He added that "the wheels are coming off" its automotive business, with sales declines across "almost every market." Sales fell 13% for the first half of this year, as its core EV business deteriorated due to an aging lineup and brand damage from Musk's political activism. With no affordable vehicles on the horizon until the last three months of the year and the upcoming elimination of a $7,500 U.S. tax break for EV buyers, Musk acknowledged that the company could have "a few rough quarters." "The numbers kind of speak for themselves," said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a Tesla investor. "They're bad for a growth company, which isn't growing." Tesla shares were down more than 8% in midday trading on Thursday. They have declined 24% this year and robotaxis and autonomous driving are critical to maintaining the company's roughly $1 trillion stock-market valuation. REGULATORY BARRIERS The fall in core auto sales has led to more investor scrutiny of Musk's lofty robotaxi promises. Products such as the Cybertruck have come later than anticipated, and Musk has promised every year since 2016 that driverless Teslas would arrive no later than the following year. Many questions on Wednesday's call focused on how quickly Tesla would be able to expand robotaxi services, and the regulatory hurdles that remain. Musk said he expected the robotaxi business would have a "material impact" on Tesla's business by the end of next year. In April, he said it would become material "around the middle of next year," and predicted "millions of Teslas operating autonomously" by the second half of 2026. The San Francisco Bay Area was first on Musk's list of expansion markets, but California regulators told Reuters on Wednesday that Tesla had not yet applied for permits needed to pick up and charge passengers for rides in fully autonomous vehicles. Companies need a series of permits from both the California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC) in order to test and deploy autonomous vehicles in the state. To date, Tesla only has obtained the first in a series of permits needed to launch a service, and spokespeople for both agencies said the company has not applied for the additional permits needed to test and operate autonomous vehicles. Tesla did not respond immediately to a request for comment. It disclosed in a filing on Thursday that regulators have asked for information on its robotaxi plans. Federal safety officials previously had said they were seeking information after reviewing online videos of robotaxis in Austin allegedly using the wrong lane and speeding. California has no specific time period to grant such permits, but Alphabet's Waymo, which offers autonomous ride-hailing in Los Angeles and the Bay Area, logged more than 13 million testing miles and secured seven different regulatory approvals over nine years before receiving approval to charge passengers for rides in driverless robotaxis in 2023. Tesla has logged just 562 testing miles (904 km) in California since 2016, and has not reported any autonomous-driving miles to the state in six years, according to the most recent state records. Paul Miller, principal analyst at market research and consultancy firm Forrester, pointed to Musk's comment about addressing half of the U.S. population "subject to regulatory approvals." "That caveat is an important one, as regulatory approvals take time," he said. Other markets Musk mentioned could move faster. In Arizona, a state Department of Transportation spokesperson said Tesla contacted state officials last month and had applied for permits to test and operate autonomous vehicles with and without a safety driver. The agency said a decision is expected at the end of the month. Tesla also must seek permits to operate a ride-hailing service and submit plans to the state for how police agencies can deal with their autonomous vehicles, the spokesperson said. Nevada DMV officials said they discussed the state's process with Tesla last week, but no steps have been taken, while officials in Florida did not respond to a request for comment. Some investors are also seeking more specifics about the Austin launch. Gene Munster, managing partner at Deepwater Asset Management, a Tesla investor, said he was disappointed the EV maker gave no updates on its earnings call on when the Austin service would be available to the general public or how many vehicles would be on the road. "It seemed like he wanted to kind of steer clear of really putting hard estimates out there for how things play out," Munster said. OUTLOOK Morgan Stanley after the results predicted that Wall Street would lower forecasts in expectation of lower sales and higher costs. Musk did not mention his new political party, but his relationship with Trump has deteriorated. The president on Thursday denied that he was aiming to destroy Musk's companies. "Everyone is stating that I will destroy Elon's companies by taking away some, if not all, of the large scale subsidies he receives from the U.S. Government. This is not so!" Trump said in a social media post. (Reporting by Chris Kirkham in Los Angeles, Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Peter Henderson and Jamie Freed)
NDTV
5 days ago
- Automotive
- NDTV
Tough Road For Tesla As It Hopes Robotaxis Will Offset Declining Electric Vehicle Sales
Tesla and its CEO Elon Musk are walking an increasingly difficult tightrope as the company navigates declining electric vehicle sales and an autonomous driving business that has yet to get off the ground. On Wednesday's earnings call, Musk said Tesla is "getting the regulatory permission to launch" robotaxis in several states, including California, Nevada, Arizona and Florida. He expects operations to reach "half the population of the US by the end of the year" and to roll out at scale by the end of next year. So far, though, the company is operating only a small fleet in Austin, Texas, that is not available to the general public. And getting regulatory approvals, particularly in California, is likely to prove a bigger hurdle than Musk described on the call. "Tesla cannot afford a misstep with the robotaxi service," said Camelthorn Investments adviser Shawn Campbell, who owns Tesla shares. He added that "the wheels are coming off" its automotive business, with sales declines across "almost every market." Sales fell 13% for the first half of this year, as its core EV business deteriorated due to an aging lineup and brand damage from Musk's political activism. With no affordable vehicles on the horizon until the last three months of the year and the upcoming elimination of a $7,500 US tax break for EV buyers, Musk acknowledged that the company could have "a few rough quarters." "The numbers kind of speak for themselves," said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a Tesla investor. "They're bad for a growth company, which isn't growing." Tesla shares are already down nearly 18% this year and robotaxis and autonomous driving are critical to maintaining the company's roughly $1 trillion stock-market valuation. Regulatory Barriers The fall in core auto sales has led to more investor scrutiny of Musk's lofty robotaxi promises. Products such as the Cybertruck have come later than anticipated, and Musk has promised every year since 2016 that driverless Teslas would arrive no later than the following year. Many questions on Wednesday's call focused on how quickly Tesla would be able to expand robotaxi services, and the regulatory hurdles that remain. Musk said he expected the robotaxi business would have a "material impact" on Tesla's business by the end of next year. In April, he said it would become material "around the middle of next year," and predicted "millions of Teslas operating autonomously" by the second half of 2026. The San Francisco Bay Area was first on Musk's list of expansion markets, but California regulators told Reuters on Wednesday that Tesla had not yet applied for permits needed to pick up and charge passengers for rides in fully autonomous vehicles. Companies need a series of permits from both the California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC) in order to test and deploy autonomous vehicles in the state. To date, Tesla only has obtained the first in a series of permits needed to launch a service, and spokespeople for both agencies said the company has not applied for the additional permits needed to test and operate autonomous vehicles. Tesla did not respond immediately to a request for comment. California has no specific time period to grant such permits, but Alphabet's Waymo, which offers autonomous ride-hailing in Los Angeles and the Bay Area, logged more than 13 million testing miles and secured seven different regulatory approvals over nine years before receiving approval to charge passengers for rides in driverless robotaxis in 2023. Tesla has logged just 562 testing miles (904 km) in California since 2016, and has not reported any autonomous-driving miles to the state in six years, according to the most recent state records. Paul Miller, principal analyst at market research and consultancy firm Forrester, pointed to Musk's comment about addressing half of the US population "subject to regulatory approvals." "That caveat is an important one, as regulatory approvals take time," he said. Other markets Musk mentioned could move faster. In Arizona, a state Department of Transportation spokesperson said Tesla contacted state officials last month and had applied for permits to test and operate autonomous vehicles with and without a safety driver. The agency said a decision is expected at the end of the month. Tesla also must seek permits to operate a ride-hailing service and submit plans to the state for how police agencies can deal with their autonomous vehicles, the spokesperson said. Nevada DMV officials said they discussed the state's process with Tesla last week, but no steps have been taken, while officials in Florida did not respond to a request for comment. Some investors are also seeking more specifics about the Austin launch. Gene Munster, managing partner at Deepwater Asset Management, a Tesla investor, said he was disappointed the EV maker gave no updates on its earnings call on when the Austin service would be available to the general public or how many vehicles would be on the road. "It seemed like he wanted to kind of steer clear of really putting hard estimates out there for how things play out," Munster said.
Yahoo
03-07-2025
- Business
- Yahoo
Ross Gerber Slams Trump's Tax Plan As 'Biggest...Scam Out There,' Says It Threatens Clean Energy Future: 'Big Ugly Bill'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Investment advisor and CEO of Gerber Kawasaki Wealth and Investment Management, Ross Gerber, has sharply criticized the new tax cut bill – One Big Beautiful Bill Act, which was passed by the House and awaits pending approval from the Senate. What Happened: In an X post, Gerber labeled it 'the big ugly bill,' accusing it of sabotaging critical advancements in clean energy and transportation while conveniently sidestepping a notorious tax loophole known as carried interest, which he branded 'the biggest tax scam out there.' The 'One Big Beautiful Bill Act,' currently under consideration in the 119th U.S. Congress, has sparked debate with its proposed amendments to tax codes and energy policies. Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Gerber, whose firm manages a $3.36 billion portfolio with a strong focus on technology, clean energy, and transportation as of Dec. 31, 2024, argues that the bill threatens to dismantle key provisions of the Inflation Reduction Act. That earlier legislation, enacted in 2022, has catalyzed $321 billion in private investment across 2,369 U.S. clean-energy projects, according to a June 5, 2025, report by carried interest, a tax provision allowing private equity and hedge fund managers to pay a reduced capital gains tax rate of 23.8%, compared to the income tax rate of 37%, on their share of profits, was also central to Gerber's criticism. According to Gerber, this loophole saves wealthy fund managers billions annually, disproportionately benefits the ultra-rich, while straining federal revenues. Why It Matters: Here is a list of a few clean energy stocks and an exchange-traded fund that investors could consider as a play on the possible effects on the industry, as highlighted by YTD Performance One-Year Performance First Solar, Inc. (NASDAQ:FSLR) -18.41% -31.69% SunPower Corporation (NASDAQ:SPWR) -3.35% 44.17% Wind Systems (OTCQX:VWDRY) 11.76% -31.18% NextEra Energy, Inc. (NYSE:NEE) -1.01% 1.42% Plug Power Inc. (NASDAQ:PLUG) -50.21% -49.12% Ballard Power Systems (NASDAQ:BLDP) -20.65% -34.53% Fluence Energy, Inc. (NASDAQ:FLNC) -63.69% -62.63% Contemporary Amperex Technology Co. Ltd. (CATL) -2.53% 43.25% iShares Global Clean Energy ETF (NASDAQ:ICLN) 12.24% -2.18% Apart from these industry-specific effects, the One Big Beautiful Bill Act is also expected to increase the federal deficits by $3.8 trillion, as highlighted by the Congressional Budget Office's estimates on the distributional impacts of the bill. Following Friday's record-setting rally, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Monday. The SPY was up 0.47% at $617.80, while the QQQ advanced 0.71% to $551.98, according to Benzinga Pro data. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Image Via Eric Hartline-Imagn Images This article Ross Gerber Slams Trump's Tax Plan As ' Out There,' Says It Threatens Clean Energy Future: 'Big Ugly Bill' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Time of India
02-07-2025
- Automotive
- Time of India
Tesla quarterly deliveries seen falling again
Tesla is expected to report another fall in quarterly deliveries on Wednesday as the backlash against CEO Elon Musk's political views and competitive pressures continue to drag on demand. While much of Tesla's trillion-dollar valuation hangs on Musk's bet on commercializing robotaxis, most of the company's current revenue and profits come from its core business of selling electric vehicles - one that has been under pressure due to high interest rates and rising competition. The global EV market has been growing, albeit at a slower pace than in previous years, but annual sales of Tesla's aging lineup fell for the first time in 2024. While Musk has said sales will return to growth in 2025 - a pullback from his earlier promise of 20-30% growth - analysts expect an 8% sales decline this year. For the second quarter ended June, Tesla is expected to deliver 394,380 units, according to 23 analysts polled by Visible Alpha. That would be a drop of more than 11% year-over-year, and would follow a 13% decline the company reported in the previous quarter. Tesla has said the fall last quarter was due to a pause in production to shift to a refreshed version of its best-selling Model Y SUV, and analysts had said many customers were delaying purchases as they waited for it to roll out. "I think a lot of analysts were thinking this quarter would have a bump positive because of the new Model Y," said Ross Gerber, CEO of Tesla investor Gerber Kawasaki Wealth and Investment Management. "But the new Model Y in my mind isn't such a departure from the old Model Y," he said, adding that demand for the model did not live up to expectations. Instead, people bought fewer Tesla vehicles. Some prospective buyers were irked by Musk's public embrace of far-right politics in Europe and work for U.S. President Donald Trump overseeing cuts to federal jobs and funding. Though Musk has shifted his focus back to his companies, the backlash, along with customers choosing cheaper Chinese EVs, led to the fifth straight month of falling sales for Tesla in Europe, with a 27.9% drop in May, data from the European Automobile Manufacturers Association showed. In China, Tesla's share of the EV market has fallen to 7.6% for the first five months of 2025, from 10% last year and a peak of 15% in 2020, as competitors won over consumers with snazzy, new, feature-packed EVs. Xiaomi's YU7 SUV received exceptionally strong orders hours after going on sale last week and fanned speculation that Tesla may have to cut prices to fight back. "Lagging sales in Europe compared to the rest of the EV market and the increasing competition in China are both working against Tesla going forward," said Sam Fiorani, vice president at research firm AutoForecast Solutions. To achieve Musk's target of returning to growth this year, Tesla - if those second-quarter estimates are accurate - would need to hand over more than a million units in the second half, which would be a record and a tough challenge, according to Wall Street analysts, although typically sales are stronger in the latter half. Some help could come from Tesla's planned cheaper model - expected to be a stripped down Model Y - that the company has said it will start producing by June end. Reuters reported in April it would be delayed by at least a few months. After tanking early this year amid angry anti-Musk protests, Tesla shares have regained some ground recently. Last month, the company rolled out about a dozen robotaxis in a limited part of Austin, Texas, ferrying a small group of invited fans for a nominal fee but with a safety monitor and other restrictions.
