Tesla Inc. TSLA CEO Elon Musk emphasized that the company should be recognized as an AI or robotics company rather than just an auto company.
What Happened: Musk made these comments during Tesla’s Q1 earnings call on Tuesday. He pointed out that Tesla’s sales drop in China was less than that of its competitors, saying it was better off than its competitors during the March 2024 quarter.
But beyond that, Musk thinks Tesla should be looked at as an AI and robotics company, not just an auto company.
"I think Cathie Wood said it best, like really, we should be thought of as an AI or robotics company." Earlier this month, Wood said Tesla is the "biggest AI project" in the world.
"If you value Tesla as just like an auto company, you just have to – fundamentally, it’s just the wrong framework and it will come to be."
Musk's comments come amid Tesla missing Wall Street estimates, with $21 billion in revenue, down 9% year-on-year, compared to a Street consensus estimate of $22.15 billion, according to data from Benzinga Pro.
Musk also stressed that those who do not believe in Tesla’s ability to achieve autonomy should not invest in the company. He expressed confidence in Tesla’s capacity to solve autonomy, which would significantly increase the usage of its vehicles without raising costs.
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Why It Matters: Musk’s recent comments align with his previous statements about Tesla’s focus on AI and robotics.
In August 2021, during Tesla’s “AI Day,” Musk highlighted the company’s plans to build Tesla’s humanoid robot Optimus and its broader ambitions in the field of artificial intelligence.
Despite challenges and skepticism from some quarters, Musk has remained steadfast in his belief in Tesla’s potential to lead the way in autonomous driving.
He has also indicated that the company is in talks with a major automaker to license its Full Self-Driving (FSD) software, a move that could further solidify Tesla’s position in the AI and robotics space.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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