Tesla currently finds itself in quite a dilemma: the company’s core business is in free fall, with Elon Musk at the helm.
However, now that Tesla’s stock is firmly in the “meme stock” category, it would likely crash without him pumping it.
Nothing can prove that Tesla is a meme stock that trades on vibes more than the stock going up 20% this week after it reported its worst earnings in years and came in way below expectations.
Tesla’s earnings trends point to a company in a difficult situation:
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Tesla’s vehicle deliveries have been declining since 2024, along with its automotive gross margins, despite a rise in EV sales globally.
Last quarter, Tesla would have lost money if it weren’t for the sale of regulatory credits, despite energy storage sales surging.
Energy storage is Tesla’s only silver lining. Still, the company has warned that it could become problematic since it relies on inexpensive Chinese battery cells, which are now subject to tariffs. Furthermore, the competition is intensifying with companies like CATL and BYD, which supply battery cells to Tesla’s energy storage products, having launched competing products.
With Tesla’s EV sales dropping, in part due to Musk alienating half of Tesla’s customer base, and in part due to his leadership pushing for autonomous driving rather than a more diverse vehicle lineup, the automaker is in clear need of new leadership.
Musk is becoming too political and controversial to be the face of a consumer product company, and he is splitting his time with six different projects, making significant mistakes in the process.
Under Musk, Tesla has launched a single new vehicle in the last 5 years, the Cybertruck, and it has been a total commercial flop. He has been consistently wrong about when Tesla would solve self-driving for the last 10 years. Most CEOs would have been fired by now.
At this point, it is difficult to argue that Tesla’s business would not benefit from new leadership.
However, there is one aspect of Tesla that would not benefit from Musk leaving: Tesla’s stock. It currently trades at an insane 165 price-to-earnings ratio amid declining earnings.
That’s unheard of in the auto industry, and it is also extremely rare in the tech industry, in which Musk attempts to position Tesla to justify such a high P/E even though most of its earnings are still tied to selling cars.
The only reason Tesla is currently able to maintain this is the fact that there are a surprising number of people who believe Musk when he says that Tesla is on the verge of solving “real-world AI”, which refers to self-driving vehicles and humanoid robots.
That’s it.
Tesla’s stock price has basically become an index of how much investors trust Musk’s claims about Tesla’s self-driving and robotic efforts – because no one can argue that it has anything to do with Tesla’s core business and fundamentals since those are in free fall and would justify Tesla trading at about a fifth of its current valuation.
Therefore, the stock price relies on people believing that Musk, who has been consistently wrong about Tesla solving self-driving and never releasing any data to prove otherwise, is right this time about Tesla being on the verge of solving the problem and ahead of the competition.
If Musk leaves, those people would likely take the stock with them, resulting in a potential crash.
Electrek’s Take
That’s quite the conundrum.. for some. For me, you save the business and not the stock. The stock will eventually come down at some point anyway. The business of selling millions of EVs is actually good for the world and employs about 100,000 people.
Musk has been able to keep things going for a long time, to his credit, with the hope that Tesla will eventually catch up to his hype, but it looks like the most likely outcome is that he can only keep things going until other companies start to scale their autonomous driving efforts.
Waymo is already completing 250,000 autonomous rides per week in the US. Musk has been able to make his cult ignore that by claiming that it’s not scalable, even though those weekly rides have more than doubled in the last year.
In China, Baidu, WeRide, PonyAI, and others are already becoming mainstream.
As those efforts become more popular and the number of people who use them regularly reaches the millions, it will become harder for Musk to present Tesla as a leader in autonomy while carrying a decade of missed deadlines.
I think Tesla has a real shot at solving general autonomy, but I believe it will happen closer to 2027-2028, with a new hardware suite. By that time, Tesla will have plenty of established competition, in addition to Waymo, and it will carry the significant liability of having promised self-driving capabilities on millions of HW3-4 vehicles that it cannot deliver.
This is not a great situation, and it’s entirely because of Musk.
However, he has his position at Tesla secured. Even Tesla shareholders who have serious doubts about Tesla’s self-driving efforts don’t want to oust him on the off-chance that he might be right. This points to most of Tesla’s value currently lies in the mystique of Musk being a “super genius.”
You often see it on social media. When someone criticizes Musk or Tesla, instead of providing a counterargument to the criticism, Musk fans will simply attack the messenger and ask: “Who are you to question Musk? How many rockets have you landed?”
This is cult behavior. You can’t question the leader. It’s a perilous situation that rarely has a happy outcome.
Musk is smart, and his companies have achieved incredible things under his leadership, but that doesn’t mean he is a super genius who can’t make mistakes.
He has been wrong many times and has lied on numerous occasions. He has proven himself willing to lie and mislead people for his own benefit. That’s not someone you should put your trust in. People, especially in the US, tends to assign a ton of value to someone who has amassed wealth.
I am not someone who automatically thinks someone is bad because they are a billionaire. However, I also know that if you are somewhat intelligent, connected to wealthy individuals, and have low morals, it is fairly easy to accumulate wealth. I think Musk fits this category with a messiah complex on top of it.
I am curious to know if anyone sees a way out of this conundrum for Tesla at this point. As a fan of Tesla’s original mission to accelerate the advancement of electric transportation, I believe Tesla can still contribute to that goal, but not with Musk at the helm.
Yet, the only people who can kick Musk out are Tesla shareholders, and as described above, they are incentivized not to push him out because it would likely lead to a significant decline in Tesla’s stock price.
What can be done? I’ll hang out in the comments to see if you have ideas.
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Capable of delivering up to 1,200 kW of power to get electric commercial trucks back on the road in minutes, the new ABB MCS1200 Megawatt Charging System is part of an ecosystem of electric vehicle supply equipment (EVSE) that ABB’s bringing to this year’s ACT Expo.
ABB E-mobility is using the annual clean trucking conference to showcase the expansion of its EVSE portfolio with three all-new charger families: the field-upgradable A200/300 All-in-One chargers, the MCS1200 Megawatt Charging System for heavy-duty vehicles shown (above), and the ChargeDock Dispenser for flexible depot charging.
The company said its new product platform was built by applying a computer system-style domain separation to charger design, fundamentally improving subsystem development and creating a clear path forward for site and system expansion. In other words, ABB is selling a system with both future-proofing and enhanced dependability baked in.
“We have built a system by logically separating a charger into four distinct subsystems … each functioning as an independent subsystem,” explains Michael Halbherr, CEO of ABB E-mobility. “Unlike conventional chargers, where a user interface failure can disable the entire system, our architecture ensures charging continues even if the screen or payment system encounters issues. Moreover, we can improve each subsystem at its own pace without having to change the entire system.”
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The parts of ABB’s new EVSE portfolio that have been made public so far have already been recognized for design excellence, with the A400 winning the iF Gold Award and both the A400 and C50 receiving Red Dot Design Awards.
New ABB chargers seem pretty, good
ABB’s good-looking family; via ABB.
ABB says the systemic separation of its EVSE enhances both reliability and quality, while making deployed chargers easier to diagnose and repair, in less time. Each of the chargers’ subsystems can be tested, diagnosed, and replaced independently, allowing for quick on-site repairs and update cycles tailored to the speed of each systems’ innovation. The result is 99% uptime and a more future-proof product.
“The EV charging landscape is evolving beyond point products for specific use cases,” continued Halbherr. “By implementing this modular approach with the majority of our R&D focused on modular platforms rather than one-off products … it reduces supply chain risks, while accelerating development cycles and enabling deeper collaboration with critical suppliers.”
Key markets ABB is chasing
HVC 360 Charge Dock Dispenser depot deployment; via ABB.
PUBLIC CHARGING – with the award winning A400 being the optimal fit for high power charging from highway corridors to urban locations, the latest additions to the A-Series All-in-One chargers offer a field-upgradable architecture allowing operators to start with the A200 (200kW) with the option to upgrade to 300kW or 400kW as demand grows. This approach offers scalability and protects customer investment, leading to Total Cost of Ownership (TCO) savings over 10 years.
PUBLIC TRANSIT AND FLEET – the new Charge Dock Dispenser – in combination with the already in market available HVC 360 – simplifies depot charging with a versatile solution that supports pantograph-, roof-, and pedestal charging options with up to 360kW of shared power and 150m/490 ft installation flexibility between cabinet and dispensers. The dispenser maintains up to 500A output.
HEAVY TRUCKS – building the matching charging infrastructure for commercial vehicles and fleets represents a critical innovation frontier on our journey to electrify transportation. Following extensive collaboration with industry-leading truck OEMs, the MCS1200 Megawatt Charging System delivers up to 1,200kW of continuous power — 20% more energy transfer than 1MW systems — providing heavy-duty vehicles with purpose-built single-outlet design for the energy they need during mandatory driver breaks. To support other use cases, such as CCS truck charging, a dual CCS and MCS option will also be available.
ABB says that the result of its new approach are chargers that offer 99% plus uptime — a crucial statistic for commercial charging operations and a key factor to ensuring customer satisfaction. The new ABB E-mobility EVSE product family will be on display for the first time at the Advanced Clean Transportation Expo (ACT Expo) in Anaheim, California next week, then again at Power2Drive in Munich, Germany, from May 7-9.
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Along with Tennessee Tech, Tennessee-based ultralight aircraft company Whisper Aero has secured a $500,000 grant to help advance the company’s innovative electric jet motor concept off the drawing board and onto the testing phase.
Earlier this month, the Tennessee Department of Economic and Community Development (TNECD) announced plans to award $500,000 to Tennessee Tech and Whisper Aero through the Transportation Network Growth Opportunity (TNGO) initiative.
“We look forward to using these award dollars to place students in internships working directly with Whisper Aero leaders,” said Tennessee Tech President Phil Oldham. “By learning from an electric propulsion innovator like Whisper Aero, our students will gain invaluable perspective and can take what they have learned in the classroom and apply it right here in Tennessee.”
The grant will see a Whisper Aero glider fitted with a pair of the company’s eQ250 electric-powered jet “propulsors” for UltraQuiet flight. Tennessee Tech faculty and students will carry out copper-bird ground testing to ensure the safe integration of engines, batteries, and controllers, and kickstart Tennessee Tech’s new Crossville Mobility Incubator.
Whisper Aero’s main claim to fame is its innovative UltraQuiet WhisperDrive (above). It’s effectively an electrically spun ducted fan jet engine that uses a large number of stiff composite fan blades inside a lightweight, acoustically treated duct. With so many blades, the Whisper Aero propulsor can push more air than a conventional prop while spinning much more slowly. As such, the “blade passage frequency” moves up to more than 16,000 Hz – outside the range of most human hearing but not, supposedly, high enough to freak out the beagles.
The Whisper Aero ultralight is effectively an Aériane Swift3 glider fitted with a pair of Whisper’s eQ250 propulsors, each capable of up to 80 lbs. of thrust. The Ultralight has a wingspan of over 40 ft with a maximum L/D of 35:1 and can be stressed to a design loading of +6/-4g, making it capable of some pretty impressive acrobatic feats.
The Swift3 glider is designed for a low speed, low power cruising speed of 45–55 knots with “just” 6.5 hp. Power-off glides from a few hundred feet showed a low sink rate, and a climb rate of 1,250 ft/min with full self-launching power (in other words: the Whisper glider doesn’t have to be towed by a launch vehicle, like a conventional ultralight glider).
Quiet cool
Dual WhisperDrive fans deliver ~160 lbf of thrust; via Whisper Aero.
Range under full power is about 109 miles with current battery tech, but it’s expected that range under the latest EPiC 2.0 energy batteries would rise to nearly 170 miles.
Nathan Millecam, CEO of Electric Power System, said, “EPiC 2.0’s leap in energy density and thermal performance has enabled a significant increase in range, a clear validation of our next-gen cell technology. We are impressed by what the Whisper team continues to achieve in advancing electric aviation.”
The press release concludes explaining that flight tests are expected to show that the Whisper Aero glider can be flown, “a few hundred feet away from neighborhoods without any disturbances, while carrying a 220 lbs. payload with full range,” which is all kind of ominous in today’s political climate, but still pretty neat from a purely tech perspective.
With support from TNECD’s Transportation Network Growth Opportunity (TNGO) initiative, Tennessee Tech University and Whisper Aero are partnering to advance next-generation propulsion technology in the aerospace industry. This collaboration will enhance aerospace research and workforce development, ensuring Tennessee remains a leader in cutting-edge mobility solutions.
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A Tesla Cybertruck owner believed Elon Musk’s claims that the Cybertruck would be able to “act as a boat” and “cross rivers”, and he got his $100,000 stuck because of it.
Elon Musk has often made claims about how Tesla vehicles could float and briefly serve as a boat in the past.
We have never been taken too seriously because Tesla’s warranty states something different about taking the vehicle into water.
However, the CEO doubled down on the claim specifically for the Cybertruck.
Cybertruck will be waterproof enough to serve briefly as a boat, so it can cross rivers, lakes and even seas that aren’t too choppy.
The CEO added that the goal is for a Cybertruck to be able to cross the water between SpaceX’s Starbase and South Padre Island in Texas, which is about 360 meters (1,100 feet).
We have been taking the Cybertruck more seriously with water because we learned that Tesla built a ‘wade mode’ for the truck to be able to go into the water. Tesla says the mode increases the ride height to the max and temporarily “pressurizes the battery pack.”
The problem is that it is activated through the off-roading mode, which is not covered under Tesla’s warranty – so we are taking everything with a grain of salt.
Whenever Tesla’s warranty contradicts what Musk says, it is better to follow to the warranty.
A Tesla Cybertruck owner in Truckee, California, appears not to have received this sage advice since they activated the wade mode and attempted to get into the water.
The Cybertruck owner quickly got stuck. The local California Highway Patrol (CHP) shared some pictures of the aftermath (via Facebook):
CHP Truckee helped with the recovery and commented on the incident:
Cybertruck activated “Wade Mode”… and waded a bit too far… We’re all for testing boundaries… but maybe not the waterline. Remember folks, “Wade Mode” isn’t “Submarine Mode.” If your plans include exploring the great outdoors, make sure to know your limits and the terrain.
There’s no detail on the damage to the Cybertruck, if any.
At the risk of stating the obvious, this is clearly more of a user error than a Cybertruck problem.
I think the verdict is clear: Cybertruck is far from the best electric pickup truck for off-roading.
However, in general, you shouldn’t expect a truck to get out of water on a muddy bank.
I think a lot of Cybertruck owners are new to trucking and off-roading, and they are making the truck look worse than it is at off-roading.
If you want to take your Cybertruck off-road, I recommend to first go with an off-roading guide that can help avoid some simple mistakes like this.
Also, in general, don’t take Elon Musk’s claims at face value when he says that Tesla vehicles can do something that sounds like an exaggeration. It probably is an exaggeration.
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