🐺 Tesla’s Rough Time: Cheap EVs, Robotaxi Hype, and a Revenue Dive

January 30, 2025

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Tesla’s latest earnings call had it all: missed estimates, falling revenue, discount fire sales, and Elon Musk’s usual overpromises—this time featuring robotaxis, cheap EVs (again), and a self-driving wolf (seriously). Let’s break down what matters to auto dealers.

Tesla’s Sales Slump: The Discount Dilemma

Tesla’s automotive revenue dropped 8% year-over-year, marking the company’s first annual decline in deliveries since 2011. Despite throwing hefty discounts at customers like an end-of-year clearance sale, demand didn’t pick up enough to stop the bleeding.

  • Revenue: $25.71 billion (missed expectations)

  • Automotive revenue: $19.8 billion (down from $21.56B last year)

  • Net income: Down 71% from last year

  • Operating margin: 6.2% (compared to 10.8% in Q3—ouch.)

With price cuts failing to drive sustainable sales, Tesla’s growth narrative is looking shaky.

The ‘Cheaper Tesla’ Promise (Déjà Vu, Anyone?)

Musk is once again promising “more affordable” Teslas in 2025. Yes, the same promise he made last year. And the year before that.

This time, Tesla claims the cheaper model(s) will reuse parts from both current and next-gen vehicles and will roll off the same production lines. But no price, no specs, and no actual details were given. Investors and analysts? Not convinced.

Robotaxis: More Hype, No Timeline

Musk also doubled down on Tesla’s robotaxi plans, claiming the company will launch an unsupervised Full Self-Driving (FSD) service in Austin this June.

  • No details on how this will actually work.

  • No word on how regulators will feel about “unsupervised” Teslas.

  • No explanation of why Tesla’s FSD still requires… a human driver.

Google’s Waymo and China’s WeRide already have commercial robotaxi services up and running—meanwhile, Tesla’s just making promises. Again.

Elon’s Solar Sales Pitch: “Your Family’s Life Might Depend on It”

In one of the more eyebrow-raising moments of Tesla’s earnings call, Musk made an impassioned plea for customers to buy Tesla’s solar roof and Powerwall battery. His reasoning?

👉 “Your family’s life might depend on it.”

A bold claim from a guy who just took an unelected advisory seat in Washington, D.C., and is now playing a role in shaping energy policy.

The problem? Musk actively supported a president who is working to make solar energy harder to adopt. While Musk is out here warning that you and your loved ones could be in danger without his premium-priced solar products, the administration he helped elect has been:

  • Freezing funds for solar incentives and clean energy projects

  • Pushing policy that favors traditional fossil fuels over renewables

  • Rolling back regulations that help solar adoption

It’s the ultimate “buy my product or else” sales tactic—except this time, it’s coming from someone with government access and an interest in shaping policies that could benefit his companies.

If you’re getting a whiff of conflict of interest, you’re not alone. It’s one thing for Tesla to sell solar panels; it’s another for Musk to sit near the halls of power, pushing fear-based marketing while the administration he backs undercuts the very industry he’s profiting from.

What This Means for Dealers

Tesla’s sales struggles and price-cutting spree prove what dealers have known all along: profitability in the auto business isn’t just about cutting prices—it’s about sustainable margins, customer experience, and service.

While Tesla’s future cheap EVs (if they ever materialize) might pressure entry-level segments, the brand’s shrinking margins and declining demand suggest the hype train is slowing down. And if Musk really does roll out an “unsupervised” robotaxi, dealers might just want to grab some popcorn.

Meanwhile, the solar roof pitch is a reminder that Tesla isn’t just a car company—it’s a brand built on Musk’s ability to sell a dream, whether or not it holds up under scrutiny.

In the meantime, let’s get back to selling real cars.

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