As Tesla is experiencing a significant decline in sales, media reports have once again revealed that Musk is no longer focused on cars, shifting his attention to autonomous taxi services and humanoid robots.
On July 2, The Wall Street Journal reported that Tesla's global car sales in the second quarter fell by 13.5% year-on-year, following a 13% decline in the first quarter, marking one of the most severe sales crises. The lack of new models has intensified sales pressure, coupled with internal turmoil and numerous external challenges, Tesla seems to have fallen into chaos.
According to reports, Musk remains very calm about this, stating to investors in April this year, &#34;I encourage people not to focus solely on the bumps and potholes on the road ahead, but to look up at the shining castle on the mountain.&#34; In Musk's eyes, that &#34;castle on the mountain&#34; represents the promise of autonomous taxis and humanoid robots.
The article points out that “despite approximately three-quarters of Tesla's projected $100 billion revenue in 2024 coming from car sales, Musk has told investors that he is shifting his focus to autonomous vehicles and robotics.”
The Wall Street Journal noted that investors are betting on Musk's vision, which has supported Tesla's nearly $1 trillion market value. Many Wall Street analysts indicate that the valuation of Tesla's automotive business is less than $100 per share, only one-third of Tesla's approximately $300 stock price.
<h2>Lack of New Models Intensifies Sales Pressure, Automotive Business in Trouble</h2>
The article states that the Cybertruck has poor sales, being the only new model Tesla has launched in the past five years.
<blockquote>
&#34;Musk paused the development of a $25,000 affordable model, Model 2, last year. When investors inquired about when the project might be restarted, Musk stated that the company is focused on developing a version of Cybercab without a steering wheel and pedals.&#34;
</blockquote>
The article mentions that Tesla executives have stated that the company is currently focused on lowering the prices of existing models. Vice President of Vehicle Engineering Lars Moravy stated in April this year, &#34;Monthly payments are our biggest differentiating factor for cars.&#34;
Additionally, changes in the market environment have also put extra pressure on Tesla. According to estimates from Cox Automotive, overall electric vehicle sales in the U.S. fell by about 7% in the second quarter.
Ford, Hyundai, and Kia all reported significant declines in electric vehicle sales this Tuesday, although General Motors saw an increase in sales following the launch of the electric Cadillac Escalade and Chevrolet Equinox EV.
Facing sales difficulties, Tesla is expected to announce its second-quarter financial results on July 23, with analysts predicting a sales decline of about 10% and a profit drop of nearly 20%.
<h2>Internal Turmoil and External Challenges</h2>
Tesla's executive team has experienced turmoil this year. Last week, Tesla parted ways with Musk's key deputy, Omead Afshar, who had been responsible for sales and manufacturing in North America and Europe since last fall.
A few weeks ago, Milan Kovac, the head of Tesla's Optimus robot project, also left the company.
The Wall Street Journal article stated that these personnel changes reflect instability within the company and may affect its strategic execution capabilities
Musk's political activities have also impacted the Tesla brand. The world's richest man spent nearly $300 million helping President Trump get elected, but in recent weeks, he has had two disputes with Trump on social media.
After Musk once again criticized the &#34;Inflation Reduction Act,&#34; Trump retaliated, and the &#34;Trump&amp;Musk&#34; drama played out once more!
<h2>Shift in Strategic Focus: Vision for Autonomous Driving and Robotics</h2>
In the face of challenges in the automotive business, Musk has surprisingly remained calm. He told investors in April:
<blockquote>
&#34;I encourage people to look beyond the bumps and potholes on the road ahead and lift their gaze to the shining castle on the mountain.&#34;
</blockquote>
According to The Wall Street Journal, in Musk's vision, that &#34;castle on the mountain&#34; represents the promise of autonomous taxis and humanoid robots.
The article points out that despite the challenges in the automotive business, Musk has remained focused on launching autonomous taxi services in Austin, Texas.
Musk stated that this project could one day add $5 trillion to $10 trillion to Tesla's market value. He expects that by the end of 2026, there will be hundreds of thousands of fully autonomous Tesla vehicles on American roads.
The Wall Street Journal noted that despite numerous challenges, investors are still backing Musk's vision, supporting Tesla's nearly $1 trillion market valuation. However, this trust is built on promises rather than actual performance.
Many Wall Street analysts believe that Tesla's automotive business is worth less than $100 per share, only one-third of its approximately $300 stock price.
Morgan Stanley analyst Adam Jonas wrote in a research report in May, &#34;Most investors value Tesla's core automotive business between $50 and $100 per share.&#34;
This valuation discrepancy reflects the market's bet on Musk's future vision while also exposing the significant gap between actual business performance and market expectations

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The shortage of new Tesla models intensifies sales pressure, with the Cybertruck being the only new model in the past five years. Musk, however, remains very calm, telling investors to "look up at the shining castle on the mountain," shifting the strategic focus from the automotive business to autonomous taxi services and humanoid robots. Although automotive sales account for three-quarters of Tesla's revenue, analysts believe the valuation of the automotive business is only $50-100 per share, far below the stock price of about $300

- Tesla is facing a significant decline in global car sales, with a 13.5% drop in Q2 and a 13% drop in Q1, attributed to a lack of new models and internal turmoil.  
- Despite these challenges, Elon Musk remains focused on autonomous taxi services and humanoid robots, stating that investors should look beyond current difficulties.  
- Analysts suggest that Tesla's automotive business is valued at less than $100 per share, significantly lower than its current stock price of around $300, highlighting a disconnect between market expectations and actual performance.

Media reports again: Tesla is in chaos, Musk no longer cares about cars