Connect with us

Elon Musk

Tesla bull, ARK head Cathie Wood says brand damage is not long-term

Cathie Wood of ARK Invest does not believe Tesla brand damage is a long-term problem.

Published

on

Tesla bull and head of ARK Invest, Cathie Wood, admitted during an interview with Bloomberg that she does believe the company has experienced some brand damage due to CEO Elon Musk’s political involvement. However, she does not believe it is a long-term issue.

Over the past eight months, Musk’s involvement in the U.S. political landscape has swayed some to stop supporting Tesla, others to ditch their cars, and some to boycott the brand altogether. Inversely, others have started supporting Musk, Tesla, and its products as a nod of support for what he’s done for government efficiency.

The perspective on how Musk’s involvement has impacted Tesla truly varies. Its impact has been noticeable, especially in Europe, as some countries have seen some pretty drastic declines in deliveries since the start of the year.

However, some of this can be attributed to the company’s switchover to new production lines for the updated Model Y. Some can also be blamed on economic issues, as the cost of living is still relatively high. There is no denying that at least some of the impact has come from those who simply disagree with Musk and are choosing not to buy his companies’ products.

Advertisement

Wood is among Tesla’s most outspoken bulls and has tremendously high expectations for the stock moving into the late 2020s and into the 2030s. In a recent interview, she highlighted the brand’s exceptional potential moving forward, but did address some of the short-term concerns, especially regarding Tesla’s perception amongst the public:

“I think he feels he has a duty to the country to make sure we don’t ‘blow ourselves up’ with these deficits. Brand damage? Yes. I do not believe [it is long-term]. Tesla, we believe, will have a lock on the Robotaxi business in the U.S., and we believe they are going to proliferate through the United States, especially if we remove regulation from a state level to a federal level, which we believe will happen.”

Musk announced during the company’s most recent Earnings Call that he would step back from his government duties and return to Tesla in a more consistent role, as his work with the Department of Government Efficiency (DOGE) seemed to be winding down to a certain extent.

Tesla CEO Elon Musk confirms time spent with DOGE will drop ‘significantly’

It was a big win for Tesla investors, as many were interested in Musk returning his focus to the automaker, especially as 2025 is expected to be a year of many catalysts between the Robotaxi launch, affordable models coming into play, production of the Semi starting at the tail-end of the year, and the Optimus robot continuing consistent development.

Advertisement

Wood was quick to point out that Tesla is not the only car company that was suffering with lagging sales, as a macro-level perspective on the automotive industry proves that many automakers are looking for ways to avert disaster due to the ongoing tariff war.

Tesla is still the highest-valued automaker in the world, and it has plenty of bullish points to look forward to as the year nears the halfway point.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Advertisement
Comments

Elon Musk

Tesla nears closure of Full Self-Driving purchasing option

The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.

Published

on

Credit: Tesla

Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.

Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.

The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.

It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.

Advertisement

Tesla is overhauling its Full Self-Driving subscription for easier access

We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.

This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.

Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.

Advertisement

The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.

Positives

  • Lower barrier to entry and higher potential adoption
  • Financially better for many users
  • Easier transfers and brand loyalty
  • Predictable recurring revenue for Tesla
  • Access to the latest features

Negatives

  • Higher long-term cost for loyal/long-term owners
  • No true “ownership” or permanence
  • Risk of future price hikes or even deactivation
  • Perceived as of less value
  • Impact on resale and used market

Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.

Continue Reading

Elon Musk

Elon Musk’s Boring Company selected for Universal Orlando tunnel project

The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive. 

Published

on

Credit: The Boring Company/X

Elon Musk’s The Boring Company has been selected for a proposed underground transit system connecting Universal Orlando Resort and the newly opened Universal Epic Universe. 

The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive. 

As noted in a blooloop report, Universal’s Shingle Creek Transit and Utility Community Development District approved a resolution showing its intent to designate The Boring Company as the contractor for the project. 

The agreement covers the full scope of the project, from the tunnel’s design, construction, and maintenance. The project has also been described in public documents as a “point-to-point innovative transportation” initiative with a 25-year agreement.

Advertisement

The proposed Boring Company tunnels would directly link Universal’s existing parks with Epic Universe, which sits roughly three miles away from Universal Orlando Resort. Today, buses are the only direct connection between the two destinations.

Project requirements were quite stringent. Bidders were required to demonstrate at least $75 million in bonding capacity, have a minimum of seven years of operational experience, and show prior delivery of a comparable project valued at $25 million or more within the past 15 years. The Boring Company, thanks in no small part to the Vegas Loop, meets these requirements.

The Orlando selection adds to The Boring Company’s growing portfolio of Loop-style systems. In Las Vegas, the Las Vegas Convention Center Loop has transported more than two million passengers in Tesla vehicles through underground tunnels since 2021. The greater Vegas Loop system is also under construction.

For now, residents in the area seem enthusiastic about the upcoming project. In a comment to Fox35, residents noted that the tunnels could improve traffic in the area. 

Advertisement

“We are very congested at certain times and certain hours and that would certainly help with people not having to budget their time,” Mary Walters-Clark, a resident, stated. Another resident, Scott Heinz, echoed similar sentiments. “I think it would be a new opportunity to lessen traffic load and good for visitors as well,” he said.

The tunneling startup has started bringing its Loop projects to international locations. It recently signed a memorandum of understanding with Dubai’s Roads and Transport Authority to explore the development of a 17-kilometer underground Loop network beneath Dubai.

Advertisement
Continue Reading

Elon Musk

Elon Musk tops Forbes’ list of America’s 250 greatest innovators

The ranking places Musk at the top of modern American innovation.

Published

on

Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Elon Musk has been ranked No. 1 on Forbes’ inaugural list of America’s 250 Greatest Innovators. The ranking places Musk at the top of modern American innovation as the publication kicks off a series celebrating the nation’s 250th anniversary.

Forbes described innovation as “the grease in the economic engine” and the force that transforms industries and creates new ones. The publication highlighted that its honorees are not just inventors, but business leaders who successfully bring breakthroughs to market.

Musk, 54, was ranked No. 1 in this year’s list. Forbes noted that he is “the only person in history to have founded (or grown from nearly nothing) five companies, each with multibillion-dollar valuations, each in a different industry.” Those companies include Tesla, SpaceX, Neuralink, xAI, and The Boring Company.

Forbes’ methodology began with nearly 1,000 nominees submitted by its reporters. A panel of judges, including venture capitalist Jim Breyer, journalist Kara Swisher, and strategy expert Rita McGrath, ranked candidates based on creativity, breadth, engagement, disruption, and commercial impact. Artificial intelligence tools, including ChatGPT and Gemini, were also used to assess candidates before editors finalized the rankings.

Advertisement

The publication noted that more than one-third of the list consists of women and people of color, reflecting shifts in innovation and entrepreneurship over time. All individuals listed are also American citizens, though many were born abroad, including Musk himself. Musk was born in Pretoria, South Africa.

Ranked No. 2 is Jeff Bezos, 61, who Forbes credited with upending America’s $7.4 trillion retail industry through Amazon before pioneering cloud computing with Amazon Web Services. The publication highlighted that Bezos now focuses on space exploration through Blue Origin and artificial intelligence manufacturing systems at Prometheus.

At No. 3 is Bill Gates, 70, who helped launch the personal computing revolution and built Microsoft into the dominant force in workplace software. Forbes also highlighted Gates’ reinvention at age 50 as a data-driven philanthropist, including his role in helping eradicate polio from India.

Continue Reading