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Tesla shifts focus to AI and robotics under Musk's leadership

The US electric car manufacturer Tesla seems to be shifting its focus to artificial intelligence.

Eulerpool News Aug 8, 2024, 9:11 AM

Here's the translation of the heading to English:

"The US electric car manufacturer Tesla seems to be shifting its focus from electric vehicles to artificial intelligence (AI) and robotics. This strategic realignment, led by CEO Elon Musk, could be favored by the support of former US President Donald Trump.

Tesla CEO Elon Musk emphasized to analysts earlier this year that Tesla should no longer be viewed purely as an electric vehicle company. "If you rate Tesla just as a car company, that's simply the wrong framework," MarketWatch quotes Musk. "If you ask the wrong question, the right answer is impossible." This statement underscores Musk's effort to position Tesla as a leader in the fields of AI and robotics.

According to Steve Levine of The Information, falling prices and stagnating sales of electric vehicles have made a business model shift essential for Tesla to maintain its valuation. Levine believes that Musk is no longer primarily focused on combating climate change, but on making Tesla a $10 trillion company. The key to this lies in shifting the focus to AI and robotics.

This change in direction may have also helped Musk support Trump's U.S. presidency. Trump, who has denied climate change, recently toned down his criticism of electric vehicles and announced his support for Musk at a rally. He described Tesla's vehicles as "incredible," even though they "aren't for everyone.

Since Trump is considered the favorite for the presidential election in November, Musk's support from Trump could be advantageous for Tesla. A possible Republican victory could result in the repeal of tax credits for electric vehicle buyers, which Musk says would "slightly" harm Tesla, while competitors would face "devastating" consequences, according to MarketWatch.

Wedbush analyst Dan Ives commented in an interview with CNBC: "Under the Biden administration, Musk was just background noise, but in a Trump administration, that will be something that takes more of a forefront. That's why I would say Tesla is part of this Trump trade.

The Realignment of Tesla towards AI and Automation Could Help the Company Stabilize its Valuation and Solidify its Market Position in a Changing Economic and Political Environment.

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