Tesla’s fork in the road

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? Get tickets for Transition-AI: Boston to see Open Circuit live, with Google’s Caroline Golin. Open Circuit is supported by Kraken, the only proven, AI-powered operating system for utilities. Learn how Kraken helps unlock excellent customer experiences, increased innovation and reduced operational costs at kraken.tech. Open Circuit is brought to you by On.Energy. As one of the fastest-growing battery storage IPPs, On.Energy delivers turnkey resiliency solutions for utilities and enterprise customers. Whether you’re managing data centers or local grids, we help bring storage to your fleet. Learn more at on.energy. Credits: Co-hosted by Stephen Lacey, Jigar Shah, and Katherine Hamilton. Produced and edited by Stephen Lacey. Original music and engineering by Sean Marquand.