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New information has been revealed that questions Elon Musk’s leadership instincts.
The Tesla (TSLA) CEO is no stranger to controversial choices that cause both experts and investors to question his ability to lead the company. While the electric vehicle (EV) producer has risen to the top of its field, Musk’s antics have raised plenty of eyebrows.
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Since Musk began his tenure with the so-called Department of Government Efficiency (DOGE), Tesla stock has mostly trended downward, and Wall Street sentiment toward it has also decreased. Even analysts who maintained highly bullish stances on TSLA for years have reduced their price targets.
With competition rising in the EV market, both Tesla and Musk are facing a highly uncertain future as consumers take a stand against the company. Now, a new report suggests that things could be about to get worse for Musk as a poor decision he made comes into focus.
Musk ignored key warnings and Tesla may pay the price
Over the past few years, the EV landscape has shifted rapidly, as competition has intensified. When this happens, industry-leading companies such as Tesla are forced to adapt, which typically means finding new ways to innovate.
Part of Tesla’s growth strategy has focused on self-driving technology, specifically in pioneering its robotaxi. Known as the Cybercab, this autonomous vehicle is expected to be rolled out later this year, though with operations on standby. Experts have claimed that this means it doesn’t qualify as truly “self-driving.”
Related: Elon Musk faces accusations from major tech rival
This has meant prioritizing the Cybercab at the expense of another new model, specifically the $25,000 Tesla Model 2 that fans had eagerly awaited for years.
It also seems that Musk’s decision to focus on highly priced robotaxis over more affordable daily driver EVs may have been ill-advised.
According to a new report from The Information, internal analysts at Tesla warned Musk that the robotaxi “might never be profitable,” and could negatively impact the company in the long run. These experts noted that Tesla would likely be forced to keep the Cybercab mostly in the U.S., as obtaining regulatory approval in international markets would be challenging.
However, they also noted that the Model 2 would be welcomed in markets such as India, Vietnam, and parts of Latin America, which would embrace a mass-market EV from a popular brand. However, that did not prove enticing enough to sway Tesla’s leader.