Tesla’s fork in the road

32 snips

May 16, 2025

Dana Hull, a veteran auto and tech reporter at Bloomberg, dives into Tesla's controversial decision to cancel the affordable Model 2 in favor of robotaxis. She discusses how this pivot might have cost Tesla its competitive edge as BYD rises with better pricing and tech. The conversation also highlights Musk's shifting priorities affecting Tesla's sales and brand image. Hull elaborates on the lack of clear leadership in Tesla's energy initiatives and the murky product lineup, raising questions about the company's future in the evolving EV market.

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INSIGHT

Musk's Polarizing Political Shift

Elon Musk's radical political shift alienated many former supporters and Tesla customers.
His move from science advocate to Trump ally shifted Tesla's brand perception significantly.

INSIGHT

Musk’s Contradictory Leadership Style

Elon Musk built Tesla's brand as a visionary but often makes decisions that frustrate executives.
He prioritizes robotics and AI over affordable cars, abandoning the Model 2 despite market demand.

INSIGHT

Tesla Growth Hits Major Slowdown

Tesla’s growth slowed drastically, abandoning its promise of 50% annual growth.
Elon appears bored with car manufacturing and focused more on AI and robotics for future growth.

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When Elon Musk canceled Tesla's affordable Model 2 last year to go all-in on Robotaxis, he may have made the most consequential decision in the company's history. As Chinese automaker BYD captures global market share with lower-cost vehicles and superior charging technology, has Tesla prematurely surrendered the market it created?

"In his mind, I think he ushered in the EV revolution for the world, and that problem is solved, and now he wants to move on to AI and robotics," said Bloomberg reporter Dana Hull.

This pivot comes as Tesla's growth story has fundamentally changed, with the company abandoning its promise of 50% year-over-year growth and its target of making 20 million cars annually by 2030. Meanwhile, the political transformation of Musk has created massive challenges for Tesla's brand.

The departure of key executives has also left critical initiatives like virtual power plants and grid services without clear leadership, despite Tesla Energy showing promising growth.

This week, Dana Hull, veteran auto and tech reporter at Bloomberg who has covered Elon Musk's companies since 2009, joins us to discuss Tesla's strategic pivot and uncertain future in an increasingly competitive EV landscape. Dana is a regular contributor to the Elon, Inc. podcast.

"The company's product lineup is very murky right now," said Hull. Tesla's refreshed Model Y isn't selling as well as expected, and more consumers are refusing to buy from a company whose CEO has become so closely aligned with Donald Trump.

With the Cybertruck underperforming and no affordable model in sight, is Tesla setting itself up for a painful reckoning? Or will AI and robotics justify the company’s trillion dollar valuation?

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Credits: Co-hosted by Stephen Lacey, Jigar Shah, and Katherine Hamilton. Produced and edited by Stephen Lacey. Original music and engineering by Sean Marquand.