Tesla desperately needs a new story

"Tesla hasn't enjoyed a lot of good news lately. Just the last few days have brought news of the electric car-maker's dimming sales in Europe-down 42% in the European Union compared to a year ago, in the face of competition from Chinese rival BYD-and a recall in Australia of Model Y SUVs to address a potential software glitch that may cause passenger windows to close with excessive force. In its most recent quarter, the company reported revenue of $22.5 billion, a 16% decrease."

"So it makes sense that this week Tesla made a fresh effort to change the story about the brand and its trajectory. It did so with the release of its latest " Master Plan," a public document intended to declare its future goals and plans. Critics complained that, at best, it's vague, and at worst sounded like AI-generated buzzword soufflé. ("Our desire to push beyond what is considered achievable will foster the growth needed for truly sustainable abundance.")"

"The problem is that Musk has projected similar narratives before: namely, that Tesla's future is really about self-driving taxis, humanoid robots, artificial intelligence. The narrative hasn't stuck, partly because Tesla isn't really a leader in any of those sectors. Even his latest Optimus prediction was tossed in among what has now become a familiar manic barrage of X posts about a variety of cultural and political issues that have nothing to do with making cars or running a business."

Tesla experienced recent setbacks including a 42% decline in European Union sales year-over-year, a Model Y recall in Australia over a possible software glitch causing windows to close with excessive force, and a quarterly revenue drop to $22.5 billion, down 16%. The company released a new Master Plan aimed at shifting its public narrative, but critics labeled the plan vague and buzzword-heavy. CEO Elon Musk predicted 80% of Tesla's value will come from Optimus robots, echoing prior claims about self-driving taxis and AI. Skepticism persists because Tesla is not a clear leader in those emerging sectors and Musk's varied social posts dilute the message.

Read at Fast Company