Tesla‘s (TSLA 3.85%) challenges have been numerous in 2025, and investors can be forgiven for wanting to take a mulligan and perhaps redo the past six months. The electric vehicle (EV) maker is facing sales declines in key markets, backlash from consumers due to CEO Elon Musk’s political antics, and another massive price cut from BYD in China, among other headwinds.
Finally, some good news for Tesla investors to chew on: driverless vehicle testing and Musk’s political exit.
Robotaxi testing
Tesla might really be doing this whole robotaxi thing, after years of overpromising on its strategy to eventually derive most of the company’s value through its Robotaxi ambitions.
In fact, it may already be happening under our noses. According to CEO Elon Musk via his X account, Tesla has been testing self-driving Model Y vehicles with no one in the driver’s seat for several days on the public streets of Austin, Texas. This isn’t exactly news, considering Tesla promised to launch the robotaxi service in June, but nobody would blame investors for being skeptical the automaker would once again fall short of expectations.
More specifically to the launch of driverless technology, Tesla will do a slow rollout, with plans to geofence its vehicles to the “safest” parts of Austin. It will initially start with a few Tesla-owned Model Ys before planning to grow to roughly 1,000 vehicles within a few months.
Tesla investors will be holding their collective breath during the initial rollout because the danger is real, competitors and critics are watching, and the stakes are high. Remember, General Motors invested billions into its Cruise driverless vehicle subsidiary before throwing in the towel after a pedestrian incident (among other challenges).
Tesla Cybercab. Image source: Tesla.
There’s at least one person in Tesla’s corner, however. “There will be many setbacks, but given its unmatched scale and scope globally, we believe Tesla has the opportunity to own the autonomous market,” said Dan Ives, an analyst at Wedbush Securities, according to Automotive News. “The march to a $2 trillion valuation for Tesla over the next 12 to 18 months has now begun.”
Back to work
No, this subhead isn’t regarding remote workers moving back to the office, but rather the company’s controversial CEO exiting his role with the Trump administration. Musk is allegedly back to working 24/7 and sleeping at the Tesla factory.
On May 28, Musk again took to his X account to thank President Donald Trump for his time working with Department of Government Efficiency, or DOGE, and a White House official confirmed with Reuters the information, adding, “Off-boarding will begin tonight.”
As much of the consumer backlash, protests, and brand defections were driven by Musk’s political antics, investors should be thrilled to hear this adventure is coming to an end. It’s likely to blow over in time. At the end of the day, 2025 still brings many challenges for the automaker facing sales adversity for essentially the first time, but these two developments were at least a breath of fresh air for Tesla investors tired of taking in the bad news.
While Tesla might look like a buying opportunity right now, and it very well could prove to be long-term, investors would be wise to wait and see the direction of the company first. Currently, it feels like a company torn between manufacturing cars, ramping up robotaxi business, or developing artificial intelligence (AI) and robotics.
Either way, stay tuned: Tesla’s story is still in the early innings.
Daniel Miller has positions in General Motors. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy.
