On Thursday night, Tesla CEO Elon Musk conducted an unexpected all-hands meeting to update employees on product developments while addressing concerns that he was neglecting his leadership role.
Tesla’s stock has plummeted since the beginning of the year, with sales declining in key markets such as Europe, China, and even the U.S. While the transition to the new Model Y SUV has been viewed as a sales hurdle, Musk’s close ties to President Trump and his support for right-wing politicians in Europe have negatively impacted both his reputation and Tesla’s brand. Protests at Tesla showrooms, both domestically and internationally, have been escalating, alongside acts of vandalism against Tesla vehicles.
After sharing some introductory remarks and highlighting milestones like the production of 7 million EVs and the progress of the new Model Y, Musk confronted the primary issue: the backlash against the Tesla brand stemming from his political activities and leadership role in Trump’s Department of Government Efficiency (DOGE).
If you read the news, it feels like Armageddon. I can’t walk past a TV without seeing a Tesla on fire, Musk stated, alluding to the acts of protest that include burning Tesla vehicles at dealerships and vandalizing Supercharger stations. I understand if you don’t want to buy our product, but you don’t have to burn it down. That’s a bit unreasonable.
Musk and Attorney General Pam Bondi have classified these attacks as acts of domestic terrorism, with Bondi promising swift consequences for those responsible.
Overall, Musk projected a positive outlook for Tesla and encouraged employees and stakeholders to retain their shares, expressing confidence in the company’s future.
Autonomous Teslas will be everywhere. In five years, I believe we will have regulatory approval globally, so you’ll see autonomous Teslas on every continent providing rides, and nearly the entire fleet—which we expect to surpass 10 million vehicles next year—will be capable of full autonomy, he said.
Musk’s vision for robotaxis and autonomous driving remains a critical driver for Tesla’s growth, as he reiterated his ambitious goals. However, the company still faces challenges; California has just issued a preliminary permit allowing Tesla to begin ride-hailing tests with a driver, limited to employees for now.
A cornerstone of Tesla’s autonomous plans is the Cybercab robotaxi, expected to enter production in 2026. Musk mentioned that preparations are already underway at the factory using their unboxed assembly technique, designed to resemble a high-speed consumer electronics line rather than a traditional auto production line.
The line will move so quickly that people won’t even be able to get close to it—I believe it will ultimately be able to produce a car in less than five seconds, Musk added.
Regarding future product development, Musk announced that Tesla has built the first Optimus at the new production line in Fremont, with plans to sell the humanoid robot in 2026, initially to Tesla employees after internal use.
This year, we aim to produce around 5,000 Optimus robots, he shared, with a long-term goal of 50,000 robots by 2026. Given that this is a completely new product, achieving even half of that 10,000 target would be a success, but even 5,000 robots would be the size of a Roman legion.
Looking ahead, Musk forecasted that the Tesla Model Y—the company’s most significant current offering—would reclaim its status as the best-selling car in the world after its latest update.
Data indicating a slowdown, such as new car registrations, and Musk’s political engagement have negatively affected Tesla’s stock, which has dropped roughly 50% since reaching its peak in late December.
It’s difficult for those in the stock market, especially those who focus on past performance, to envision a future where a 10 million-vehicle fleet offers five to ten times the utility, Musk explained. So, I encourage you to hold on to your stock.
Musk’s appeal to retain Tesla shares comes on the heels of Commerce Secretary Howard Lutnick’s surprising suggestion earlier this week to purchase Tesla stock based on its valuation.
Despite the challenges that remain during this turbulent period, Wall Street analysts seemed relieved to see Musk back at the helm of Tesla, at least for the time being.
While challenges clearly persist for Musk and Tesla to navigate this volatile phase, last night’s meeting was a proactive step to address concerns for employees, shareholders, and partners, noted Wedbush analyst Dan Ives in a Friday morning report. Ives had previously urged Musk to tackle these issues directly. Brand integrity is crucial for Tesla, and it’s vital to ensure that the current brand crisis doesn’t evolve into a lasting blemish on Tesla’s reputation.
