Tesla is set to release its first-quarter earnings on Tuesday after the market closes – and the electric vehicle maker faces a reckoning from investors after a big sales miss. The company saw vehicle deliveries decline in the first quarter for the first time in nearly four years – falling well short of analysts' expectations amid a price war in China, where domestically made EVs like those from BYD have taken market share.
Tesla and Musk have long hinted at plans to make a cost-friendly EV, often referred to as the "Model 2" which has reportedly been developed by the company under the code name "Redwood." However, the company's focus on its robotaxi plans has left the status of that project unclear.
Earlier this year, Musk made headlines about Tesla's role in the artificial intelligence race when he wrote on X, "I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control." He added that the amount of voting power would "mean I am influential, but can be overridden if twice as many shareholders vote against me vs for me," but without that much control he "would prefer to build products outside of Tesla.
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