Part 7/14:
This decision reflects Musk’s broader strategy: prioritizing AI and autonomy over traditional car models. A senior analyst commented that Elon Musk shows little interest in making aVolkswagen Golf-like car, trusting others—in particular Tesla’s Chinese engineering teams—to develop affordable vehicles while he focuses on AI advancements.
The Internal Analysis: Are Robot Taxis Profitable?
A revealing internal report from Tesla’s own teams painted a sobering picture: the robot taxi venture might struggle financially. Analysts projected that sales of robot taxis to individuals and fleet operators could be significantly lower and less profitable than Musk anticipated. The analysis suggested that robot taxis would rarely, if ever, turn a profit given current constraints.