Elon Musk Rallies Tesla Amid Challenges: AI, Robotics, and Autonomous Vehicles at the Forefront

At Tesla's Surprise 'All-Hands,' It's More Of The Same

Earlier this week, one of Tesla's most bullish supporters in the financial space broke the glass and pulled the alarm. "Let's call it like it is," Wedbush managing director Dan Ives wrote in a note to investors. "Tesla is going through a crisis and there is one person who can fix it... [CEO Elon] Musk." That's because, in Ives' view, "Tesla is Musk and Musk is Tesla... they are synonymous and attached together and cannot be separated." But if that's true -- and it may well be -- then only one person is responsible for the global protests at Tesla stores, mass sell-offs of its cars and its sinking stock price. "Tornado crisis moment" is how Ives put it, and it's hard to be more direct than that. That situation helps to explain why Musk called a surprise all-hands at Tesla last night at the Texas Gigafactory in Austin, an event that started at almost 9 p.m. local time. That's an unusual event at Tesla; it's notorious for its newsmaking quarterly earnings calls with investors or its big debut events, like the release of the Cybertruck in 2023 or last year's We, Robot showcase in Hollywood. But a big all-hands with a public employee question-and-answer session is a bit out of left-field for the automaker. However, employees and the general public didn't seem to be the real audience for Musk's hour-long stump speech and softball Q&A. Investors did. The people who have been wondering where Musk's focus really is these days as he makes headlines for dismantling the federal government with his Department of Government Efficiency initiative or, reportedly, meeting with Pentagon officials to map out a potential war with China. (Which would hopefully leave Gigafactory Shanghai unscathed, one assumes.) All told, it was an odd moment in a year full of odd moments for Musk, who has never seemed as on the ropes as he is right now. Not even when he was sleeping on the factory floor to ramp up the Model 3, or dealing with what could've been the company's collapse when COVID restrictions threatened to upend the release of the Model Y. Yet Musk's current predicament -- risking the loss of his traditional buyer base as he allies with the Trump administration and guts federal spending, potentially unlawfully -- feels unique in how self-inflicted it all is. Making big promises around a new product that he then has to deliver on is Musk's usual M.O. This moment is so strange because all of it feels so unnecessary, at least to the core businesses he's supposed to be running. Or perhaps it's a case of a big bet backfiring. After all, this was supposed to be the year that Musk's relationship with the White House would supercharge Tesla's self-driving vehicle dreams by, presumably, tearing down any regulatory obstacles in that path. And at the all-hands, Musk more or less affirmed that this is part of the plan: "I think in five years, probably, we'll have regulatory approval, I think globally. So you'll have autonomous Teslas on every continent, taking people on trips." Yet all of these dreams -- long-promised as they are -- depend on people buying Tesla's cars right now, and supplying the company with the profits it needs to power these supposed AI and autonomy goals. That isn't happening. And the answer to this conundrum at that all-hands was... more of the same. For Musk and Tesla, it's big promises, scant details and always something big around the corner. That felt kind of magical, once. But now the company is so firmly in put-up-or-shut-up mode, and its chief executive is in such hot water with his own base, that it strikes a different tone today. Here are some highlights: "Imagine... a future where you can have any good or service you want at will, a future of abundance." "What's key to that is robotics and AI, so once you have self-driving cars and you have autonomous humanoid robots, where everyone can have their own personal C3PO and R2-D2 -- but even better." "Optimus has gone from being an idea to the most sophisticated humanoid robot on Earth. There's nothing even close." "The Model Y is... going to be the best-selling car on Earth again this year." "Optimus is maybe the biggest product ever." "I think ultimately, we'll make over a million -- millions, probably -- of the Tesla Semi. This is really going to be something that you'll see all over the place." One day, you could have "not a conventional train but the sort of Hyperloop, essentially. Vacuum tunnels... that would allow you to go from city center to city center much faster than any airplane could possibly go." And so on. It's beginning to feel a bit like the eighth season of a popular TV show. The same storylines, the same beats, just sometimes said in a different way -- or a not-so-different way. This wasn't exactly a silver bullet for Tesla's worried shareholders, though it may have calmed a few; the automaker's cratering share price crept up a couple of percentage points on Friday morning. "What I'm saying is, hang on to your stock," Musk said during the meeting, which may have been his most important message. In his note to investors earlier this week, Ives implored Musk to do two things: announce a formal plan to split his time between Tesla and DOGE, or leave DOGE entirely to avoid "permanent brand damage;" and to elaborate on the timeline for lower-cost EV models and the planned launch of the unsupervised Full Self-Driving program in Texas this summer. He got neither of those things. But in a new note, he said he's been won over anyway: "This was a key moment for Musk and Tesla to show leadership and he did. We applaud Musk for 'reading the room' and showing important hand-holding at this key time for employees and investors," Ives wrote. The new Model Y is on sale right now. We'll see who else stands up to clap soon enough.

Elon Musk juggles Tesla, Trump ties & stock woes as he attempts to rally the troops -- Is it time for a new CEO?

Tesla CEO Elon Musk addressed employees in an impromptu all-hands meeting amid mounting concerns over his leadership and the company's performance. Facing a sharp stock decline and increasing scrutiny, Musk reassured employees about Tesla's future, championing its AI, robotics, and autonomous vehicle projects. He dismissed criticism, joked about Tesla cars being set on fire, and urged investors to hold onto their stock. Tesla's workforce was summoned to a late-night all-hands meeting on Thursday, with a cryptic invite promising insights into the company's "recent achievements" and a glimpse at the future. The meeting, livestreamed on X, came as Tesla's stock has plummeted more than 40% in 2025 and as questions mount over Musk's ability to lead the company while juggling his government role. Appearing in person at Tesla's Texas Gigafactory, Musk reassured employees and investors that the company remains on a path of innovation and success. "The Tesla team is an incredible team, great human beings," Musk declared. "Anyway, some of the finest people in the world work at Tesla, designing and manufacturing our incredible products." Acknowledging the company's struggles, he urged patience. "Frankly, the car business is a tough business, so... there are times when there are rocky moments, like things are, like, a little bit of stormy weather. But what I'm here to tell you is the future is incredibly bright and exciting." "We're going to do things that no one I think has even dreamed of," he added. "Until we actually do it, people won't believe how incredible it is." Musk addressed the recent attacks on Tesla, including reports of its vehicles being set on fire. "If you read the news, it feels like, you know, Armageddon," he said. "I can't walk past a TV without seeing a Tesla on fire. You're like, 'What's going on?'" Joking about the destruction of Tesla cars, he added, "Listen, I understand you don't want to buy our product, but you don't have to burn it down. That's a bit unreasonable, you know?" He laughed, before adding, "This is psycho. Stop being psycho." Musk's dual commitments -- leading Tesla while serving as head of the Department of Government Efficiency in Donald Trump's administration -- have alarmed some investors. Ross Gerber, an early Tesla investor, didn't mince words. "He's been committed to his job in the government, that's where he's spending his time," Gerber told Sky News. "He is not running Tesla, and that's why I'm going to say it: Tesla needs a new CEO." Despite the controversies, Musk doubled down on Tesla's long-term ambitions, highlighting the upcoming robotaxi and humanoid robots. Tesla aims to produce 5,000 Optimus robots in 2025 and ramp up production to 50,000 by 2026. "Since it's a totally new product, everything is totally new," Musk admitted. "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. I think we will literally build a legion, at least one legion of robots this year and then probably 10 legions next year." The Cybercab, Tesla's planned autonomous ride-hailing vehicle, also took centre stage. "The Cybercab is not just a revolutionary car design, it's also a revolutionary manufacturing process," Musk explained. "In fact, the line will move so fast that actually, people can't even get close to it. I think it'll be able to produce a car, ultimately, in less than five seconds." Tesla's stock performance in 2025 has been brutal, down 41.6% year-to-date, making it the worst-performing stock in the S&P 500. Analysts remain divided on the company's future. Morgan Stanley analyst Adam Jonas cut Tesla's price target from $430 to $410, citing declining vehicle deliveries. Meanwhile, Wedbush Securities analyst Dan Ives commended Musk's decision to hold the all-hands meeting, writing, "Leaders lead in times of trouble and crisis, and Musk took a major and much-needed step forward." However, not all investors are convinced. Cantor Fitzgerald upgraded Tesla to overweight, but Baird analysts maintained their "bearish fresh pick" designation following concerns about production slowdowns. Musk is adamant that Tesla's future remains bright, urging investors to hold onto their shares despite the volatility. But with calls for a new CEO growing louder and Tesla's brand facing unprecedented challenges, the company's path forward is anything but certain. For now, Musk remains at the helm, balancing Tesla, his government role, and his self-proclaimed "17 jobs." As he put it: "At this point, I just go to sleep, work, go to sleep, work, and then do that seven days a week, pretty much. People say, 'When are you going on vacation?' I say, 'What's that?'"