Tesla (TSLA) CEO Elon Musk held an impromptu company all-hands Thursday night, giving an update on the progress of a number of products while also attempting to assuage fears that the CEO is ignoring his post.
Tesla stock has been in free fall since the start of the year, with sales slipping in key regions like Europe and China and even in the US. Though the changeover to the new Model Y SUV has been seen as a drag on sales, Musk’s closeness to President Trump and embrace of right-wing politicians in Europe has seen Musk — and Tesla’s brand —suffer. Protests both in the US and abroad at Tesla showrooms are growing, as are acts of vandalism on Tesla EVs.
After delivering some opening remarks and a few quick updates on Tesla’s milestones, such as 7 million EVs produced and the new Model Y’s status, Musk addressed the elephant in the room: blowback to the Tesla brand from Musk’s foray into politics and leadership of the President Trump’s Department of Government Efficiency (DOGE) initiative.
Tesla CEO Elon Musk speaks at Thursday night’s employee town hall. ·X.com
“If you read the news, it feels like Armageddon. I can’t walk past a TV without seeing a Tesla on fire,” Musk said, referencing protesters setting Tesla vehicles on fire at dealerships and vandalism at Supercharger locations. “I understand if you don’t want to buy our product, but you don’t have to burn it down. That’s a bit unreasonable.”
Musk and Attorney General Pam Bondi have labeled the attacks as domestic violence, with Bondi claiming swift retribution was coming for the perpetrators.
Burned Teslas are shown at a Tesla Collision Center after an individual used incendiary devices to set several vehicles on fire on March 18 in Las Vegas. (Ethan Miller/Getty Images) ·Ethan Miller via Getty Images
Overall, Musk maintained that the news was “good” for Tesla and urged employees and others to hold onto their Tesla stock because, in his eyes, the future is bright.
“Autonomous Teslas will be everywhere. In five years probably we will have regulatory approval, I think globally, so you will have autonomous Teslas on every continent taking people on trips, and almost the entire fleet — which will pass 10 million vehicles next year — is capable of full autonomy,” he said.
The bet on robotaxis and autonomous driving is one of the key catalysts for Tesla’s future growth, and Musk again laid out his audacious vision. However, the company is a long way from that future, with the latest news that California issued a preliminary permit for Tesla to begin ride-hailing testing with a driver, and only with employees.
The Tesla Cybercab is displayed at the AutoMobility LA auto show in Los Angeles on Nov. 21, 2024. (AP Photo/Jae C. Hong) ·ASSOCIATED PRESS
Key to the company’s autonomous vision is the Cybercab robotaxi, slated for production in 2026. Musk said the factory was already beginning preparations for production using its “unboxed” assembly technique, which would resemble a “high-speed consumer electronics line,” rather than an automotive production line.
“The line will move so fast that people can’t even get close to it — I think it’ll be able to produce a car, ultimately, in less than five seconds,” Musk added.
Speaking of future product production, Musk said Tesla built the “first Optimus at the Optimus production line in Fremont,” adding that the humanoid robot would be available for sale in 2026, initially to Tesla employees, after internal company use.
“This year, we hopefully will be able to make about 5,000 Optimus robots,” Musk said, with a goal of 50,000 robots in 2026.
People view Tesla’s Optimus humanoid robot during the 2024 Inclusion Conference on the Bund Technology for a Sustainable Future at Huangpu World Expo Park on Sept. 5, 2024, in Shanghai, China. (Long Wei/VCG via Getty Images) ·VCG via Getty Images
“But since it’s a totally new product, everything is totally new. I will say we are succeeding if we get half of the 10,000, but even 5,000 robots, that’s the size of a Roman legion,” Musk said.
Turning back to the here and now, Musk predicted the Tesla Model Y — the company’s most important current product — would once again be the top-selling car in the world following its new update.
Softness in data points like new car registrations and Musk’s time in Washington have hit Tesla stock hard — which is down around 50% since hitting highs in late December.
“It’s very difficult for people in the stock market — especially those that look in the rearview mirror, which is most people — to imagine a future where suddenly a 10 million-vehicle fleet has five to 10 times the usefulness,” Musk continued. “So what I’m saying is hang on to your stock.”
Nevertheless, Wall Street bulls are relieved to see Musk back at Tesla, at least for now.
“Challenges clearly remain for Musk and Tesla to navigate this volatile period but last night was the first step in doing this for employees, shareholders, and partners,” Wedbush analyst Dan Ives said in a note Friday morning. Ives had called for Musk to address some of these issues earlier this week.
“Brand is key to Tesla, and it’s a very important to make sure the current brand crisis does not morph into a permanent black eye for the Tesla brand,” Ives added.
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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram.
