Tesla is in disarray. Musk has already moved beyond caring about cars

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Tesla reported a 13.5% year-on-year decline in global vehicle sales for the second quarter of 2025, marking one of its worst consecutive sales streaks
• First-quarter deliveries had already fallen by 13%
• Despite the slump and growing concerns over Tesla’s aging product lineup, CEO Elon Musk has shifted focus away from cars toward developing robotaxis and humanoid robots

🔭 The context: Tesla’s last major product launch was the Cybertruck in late 2023, which has underperformed expectations
• Rising competition from Chinese and legacy automakers, coupled with slowing EV demand in key markets, has eroded Tesla’s dominance
• Musk’s recent statements and investment priorities suggest he is betting Tesla’s future less on traditional vehicle sales and more on autonomous and robotics technologies

🌍 Why it matters for the planet: Tesla’s retreat from aggressively expanding EV sales comes as the global auto industry is under pressure to cut emissions and accelerate electrification
• If Tesla (see sustainability report) sidelines its core EV business, this could slow EV adoption rates or cede market share to competitors with less ambitious sustainability agendas
• Conversely, scaling autonomous vehicles and robotics could bring new energy and efficiency challenges as well as opportunities

⏭️ What's next: Analysts expect investor scrutiny of Tesla’s strategy to intensify during the next earnings call, especially given lackluster Cybertruck sales and mounting inventory
• Policymakers and regulators are watching closely as Musk’s robotaxi ambitions hinge on approvals and safety validation
• Key milestones will include pilot robotaxi deployments expected in select U.S. cities by late 2026 and further updates on Tesla’s Optimus robot development

💬 One quote: “Elon seems more interested in chasing futuristic ideas than fixing Tesla’s present problems — and that’s a risk for shareholders and for EV momentum,” said Gene Munster, managing partner at Deepwater Asset Management

📈 One stat: Tesla’s global vehicle sales fell to approximately 405,000 units in Q2 2025, down from nearly 468,000 units in the same quarter last year

See on illuminem's Data Hub™ the sustainability performance of Tesla and its peers BYD, Rivian, and Volkswagen

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