Elon Musk: “Tesla Is No Longer Making EVs After Official Global Ban”:- Just half a year ago, Tesla stood at the summit of the electric vehicle (EV) industry. Its China sales were skyrocketing, the stock was booming, and Wall Street couldn’t stop talking about it. Retail investors worshipped the company like a movement, not just a stock. Elon Musk wasn’t a CEO—he was a prophet with a flamethrower.
But today, in 2025, that picture has changed dramatically.
Tesla’s Collapse: A 35% Drop and Falling Demand
Tesla stock is down 35% since January 2025
China sales have dropped by over 50%
Global demand is crumbling
Instead of fighting to retain its EV crown, Elon Musk is now focused on humanoid robots and robo-taxis, while the long-promised low-cost EV project has quietly been scrapped.
The result? A growing backlash from even Tesla’s most loyal fans, and an identity crisis within the brand that once defined the future of green transportation.
From Visionary to Controversial: The Changing Face of Elon Musk
Tesla was once more than a car company—it was a belief system, a Silicon Valley-backed leap into the future. Buying a Tesla meant you believed in a zero-emission world and in the visionary leading the charge.
But in early 2025, Tesla’s profits began to miss expectations. Instead of unveiling better cars or battery breakthroughs, Musk was on stage at AI Day, showing off a dancing robot, dressed like a Bond villain.
Billions Lost, Robots Gained
Since the start of the year:
Tesla’s market cap has dropped by billions
Musk has sunk vast resources into AI, autonomous driving, and humanoid robotics
Tesla’s Full Self-Driving (FSD) tech remains incomplete and controversial
And while competitors like Waymo are delivering over 200,000 fully driverless rides per week, Tesla’s FSD still requires a human behind the wheel, ready to take control.
The Tesla Brand Is Breaking
Public trust in Tesla’s tech is wearing thin. From fiery crashes to federal investigations, the brand once seen as bulletproof is now a symbol of overpromising and under-delivering.
Online, forums like Reddit and Twitter are filled with once-devoted fans asking questions no one would dare voice two years ago: “Does Tesla need a new CEO?”
What Happened to Tesla’s Mission?
The Original Vision: Sustainable Transportation
Let’s rewind. Tesla once had a clear, noble mission:
“To accelerate the world’s transition to sustainable energy.”
That mission was simple.
Build EVs, use the profits to make cheaper EVs, and eventually replace gas cars for good.
Then came Optimus, the humanoid robot Musk believes will fold laundry, cook breakfast, and replace your office coworker.
Except, Tesla doesn’t sell robots—it sells cars.
Or at least, it used to.
Tesla’s EV Sales Are Plummeting
Over 90% of Tesla’s revenue still comes from cars—but those cars aren’t selling like they used to:
In China, Tesla has been outpaced by cheaper, government-backed rivals like BYD and NIO
Tesla cut prices, sparking a global EV price war, and still lost half its Chinese market
And in a shocking twist, Elon Musk cancelled the long-awaited $25,000 EV, calling it “pointless”
That’s right—the same man who once vowed to bring affordable EVs to every family is now betting Tesla’s future on robo-taxis that don’t yet exist, powered by software that doesn’t fully work, and running on hardware that might need to be recalled.
A Company in Identity Crisis
Tesla once moved like it had gravity on its side. Now it feels directionless. Here’s what it looks like in 2025:
A car company that says it’s not a car company
A robotics firm without a commercial robot
A ride-share empire without passengers
And yet, the stock continues to trade like the next Apple.
How? Because the narrative hasn’t caught up to the numbers.
Wall Street Worshipped the Dream
Tesla was never just a stock. It was a symbol, a meme with a market cap, a techno-optimist dream wrapped in Model 3 chassis.
The numbers didn’t matter.
Autopilot wasn’t truly autonomous? No problem.
The company missed delivery targets? It’s all part of the plan.
Timelines slipped? That’s innovation.
At its peak, Tesla traded at over 100x earnings, more than all other automakers combined, despite selling a fraction of their volume.
But 2025 Brought Reality Crashing In
Investigations, Lawsuits, and Leaks
Today, Tesla is:
Facing multiple federal investigations
Dealing with wrongful death lawsuits
Handling whistleblower leaks
Under scrutiny from the Department of Justice
And the robotaxi fleet that was promised for nearly a decade?
Still vaporware.
The Missing Tech Behind the Robo-Taxi Dream
Tesla’s entire autonomy strategy is built on a camera-only system.
No LIDAR, no radar—just cameras.
Every other serious self-driving company uses both.
Even internally, Tesla admits its vehicles might require hardware swaps to enable full autonomy.
Imagine paying thousands for software—only to be told your car’s brain needs surgery. That’s not just bold—it’s broken.
Meanwhile, the Competition Is Winning
BYD Is Dominating the EV Market
In 2024:
BYD sold nearly 3 million EVs
Tesla sold 1.8 million
BYD is now expanding into Europe, Latin America, and even the U.S.
Their vehicles cost 30-40% less than Teslas, and offer comparable performance.
Waymo and Cruise Are Winning Autonomy
Waymo runs 200,000+ fully driverless rides per week
GM Cruise (despite setbacks) has logged more miles than Tesla
Tesla? Still saying “next year” since 2015.
The Pivot to Sci-Fi Isn’t Paying Off
Optimus: Impressive or Impractical?
Tesla recently demoed Optimus, their humanoid robot. It managed to sort socks into bins—slowly.
It was impressive, if you’ve never seen a Roomba.
Yet Musk insists it’s not a gimmick—it’s the future.
Meanwhile, the $35,000 EV for the masses?
Gone. Pointless, according to Musk.
Instead, we got the Cyber Cab—a steering-wheel-less robo-taxi introduced with techno music and dramatic lighting, but no working prototype.
The EV War Has Moved On—Without Tesla
While Elon Musk is pitching sci-fi robots, the actual EV race is advancing quickly.
Tesla is caught between two worlds:
Too expensive to win the affordable EV battle
Too behind to win the full autonomy race
And unlike five years ago, investors are starting to notice.
Autonomous Ride-Hailing Is a Money Pit
Even if Tesla successfully launches robo-taxis:
The cost per vehicle is astronomical
The tech needs to be flawless
The infrastructure is massive
As one analyst put it:
“You’re replacing a minimum wage driver with a six-figure robot that still needs a full-time team to manage it.”
That’s not scale. It’s science fiction funded by dilution.
Tesla’s Valuation: Dream vs. Data
Tesla still trades like a high-growth tech stock.
But what if it’s not?
What if it’s just a struggling car company with expensive side projects?
Then that valuation becomes a liability, not an asset.
And if Tesla truly becomes a robotics company?
It’s entering a space dominated by Boston Dynamics, Nvidia, and every AI startup in the Valley.
Conclusion: The End of a Story, Not the End of Tesla
Tesla did change the world:
It made electric cars cool
It made big oil nervous
It made retail investors believe in miracles
But that story may be ending.
Tesla is now a company:
Without a core product
Without a clear direction
Without the same edge
It’s no longer about EVs. It’s about something harder to define.
And that’s the danger—markets don’t punish failure, they punish confusion.
FAQs
1. Why is Tesla no longer focusing on electric vehicles?
Tesla has shifted its strategic focus toward AI, robotics, and autonomous transportation, shelving its long-promised low-cost EV. Elon Musk believes Tesla’s future lies in technologies like humanoid robots and robo-taxis, despite EVs still accounting for over 90% of its revenue.
2. What happened to Tesla’s $25,000 affordable EV?
The affordable EV, once promised to bring electric cars to the masses, has reportedly been canceled. Elon Musk referred to it as “pointless,” citing challenges in competing with low-cost Chinese manufacturers and a pivot to autonomous vehicle strategies.
3. Is Tesla’s Full Self-Driving (FSD) system fully autonomous?
No. Despite the name, Tesla’s Full Self-Driving (FSD) is not fully autonomous. It requires active driver supervision, and the company is facing criticism and legal challenges over misleading claims about its capabilities.
4. How is Tesla performing in the Chinese EV market?
Tesla’s sales in China, its largest manufacturing hub, are down over 50% in 2025. Local competitors like BYD and NIO offer more affordable EVs, often backed by government incentives, putting pressure on Tesla’s market share.
5. What is the Tesla Optimus robot?
Optimus is Tesla’s humanoid robot prototype. Designed to perform household or factory tasks, it has been demoed performing simple movements, like placing items in bins. Elon Musk claims it will play a key role in Tesla’s future, though it’s not commercially available.
6. Are Tesla’s robo-taxis operational?
No. As of 2025, Tesla has not launched a functioning robo-taxi service. The company has revealed concepts like the “Cyber Cab,” but lacks a fully autonomous vehicle capable of operating without a driver—unlike competitors such as Waymo.
7. Is Tesla still considered a car company?
That’s now up for debate. Elon Musk has stated Tesla is more of a robotics and AI company. However, the vast majority of its revenue still comes from vehicle sales, even as the company moves away from its EV roots.
8. What are the risks of Tesla’s new direction?
The main risks include technical challenges with autonomy, growing competition in robotics, and loss of focus on its core EV business. Critics argue Tesla may be overextending itself, betting on unproven technologies while falling behind in established markets.
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