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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.

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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.

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:

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“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.

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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.

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.

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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

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Elon Musk

The Boring Company paves the way for Tesla robotaxi future

The Boring Company breakthrough boosts Tesla’s robotaxi dream. Autonomous Cybercabs may soon zip through tunnels, solving gridlock for good.

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(Credit: The Boring Company

Earlier this week, The Boring Company (TBC) announced that it has continuously mined in a Zero-People-in-Tunnel (ZPIT) configuration. A Tesla executive responded to TBC’s latest milestone and explained how Elon Musk’s tunneling company will create Tesla’s robotaxi future.

The Boring Company shared videos of its ZPIT configuration and explained why this is a huge milestone.

“In the same way that full rapit reusability is the holy grail for rockets, ZPIT continuous mining is the holy grail for Boring Machines. This is the safest, fastest, and least expensive architecture to build tunnels,” TBC clarified.

Tesla vehicles with human drivers are currently used in The Boring Company’s Las Vegas tunnels to transport people. The Tesla Cybercab would significantly impact the functionality of TBC’s tunnels. Tesla’s VP of AI Software, Ashok Elluswamy, explained how The Boring Company would help create Tesla’s vision for robotaxis.

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“Will need this big time in the future,” Elluswamy said, referring to The Boring Company’s announcement about reaching ZPIT configuration.

“With autonomous vehicles, we’ll have affordable premium transport for everyone. This will likely increase traffic due to the increased usage, even though each vehicle is much more efficiently utilized,” he elaborated.

The Boring Company’s main missions are to solve traffic and provide rapid point-to-point transport. Elon Musk believes the solution to traffic is 3D road designs, which include tunnels that act like a wormhole or warp tunnel.

TBC’s Las Vegas Convention Center tunnel network showcases Musk’s idea of 3D road designs and how fast it can transport people. The Vegas Loop in Las Vegas is also expanding and will support The Boring Company’s mission.

The Boring Company is close to beating Gary the Snail’s tunneling speed with its Prufrock boring machine–another big milestone. According to TBC, the latest iteration of Prufrock can start tunneling within 48 hours of arriving at a site and dig over 1 mile per week. Prufrock’s next goal is to beat 1/10th of a human walking speed or 7 miles per day.

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Tesla is preparing to launch robotaxi services in Texas this summer. As Elon Musk’s electric vehicle company ramps up robotaxi services, his tunneling company will ensure the roads are clear of mind-numbing traffic.

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Elon Musk

Tesla seems to have fixed one of Full Self-Driving’s most annoying features

Tesla seems to have resolved an issue that many users of the Full Self-Driving suite complained about recently.

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Tesla's Cabin-facing camera is used to monitor driver attentiveness. (Credit: Andy Slye/YouTube)

Tesla seems to have listened to drivers and owners who complained about a very annoying feature that monitors the eyes of the vehicle operator while using the Full Self-Driving suite.

Earlier this month, owners complained that versions of Full Self-Driving Supervised were too quick to alert drivers of their eyes going off the road, which is required for operation.

Tesla to fix an FSD driver monitoring annoyance, Elon Musk hints

If you’re doing something as simple as adjusting HVAC settings or changing Autopilot speed offset, the cabin-facing camera would alert the driver that their eyes need to be on the road.

It was incredibly quick to warn you, and many argued that changing these features while the vehicle is using FSD is safer than doing it while operating the car manually.

After several complaints, Tesla CEO Elon Musk said he agreed with the fact that FSD would warn drivers so quickly. When a user on X noted that “I can’t even glance at the display to add a nav stop without getting yelled at” and stated it was what they hated most about FSD, Musk replied, “You’re right.”

Tesla is now rolling out a new update of the FSD suite with v13.2.9, which includes various improvements. One of which appears to be a less dramatic driver monitoring system, which includes perhaps a slightly longer grace period before it will alert you to look at the road.

Several owners are reporting they’ve noticed a change, with it being less restrictive than previously:

Driver monitoring is very important, considering people do abuse FSD and its capabilities. It is important to pay attention, even if you are overwhelmingly confident in the abilities of FSD, because, in the event of an accident, Tesla will be the one to take the bad publicity for it.

This is even if the driver is found liable for the accident.

However, from personal experience, the alerts it gave were slightly dramatic, and I felt that they were over the top. I was admonished by the driver monitoring system for simply adjusting the Autopilot speed offset.

Many owners welcome this change. FSD is being refined with every update, becoming more robust, accurate, and less naggy with its requests.

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Elon Musk

Tesla’s Elon Musk clarifies shocking Optimus fact

Musk clarified that while Optimus is already impressive today, it is still very far from its planned final form.

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Credit: Tesla Optimus/X

This week has been a tour de force of Tesla Optimus demonstrations. But even with the humanoid robot’s already impressive capabilities, CEO Elon Musk dropped a comment that truly made Optimus even more exciting. 

Inasmuch as Optimus today is likely one of the most advanced humanoid robots in the industry, it is still nothing close to what Tesla really wants to create.

Optimus Demonstrations

Optimus’ demonstrations this week caught headlines because they showed the humanoid robot performing impressive dance moves. Initially, a video posted by Elon Musk on social media platform X showed Optimus dancing while being tethered to a cable. A follow up video upped the ante, with Optimus performing actual ballet moves without any support.

Comments from Tesla Vice President of Optimus (Tesla Bot) Milan Kovac revealed that the humanoid robot’s movements were fully learned in simulation and zero-shot transferred to real without extra training. Elon Musk later joked that he would be accompanied by a troupe of dancing Optimus robots at the 2024 Tesla Annual Shareholder Meeting.

Not Even Close

But in another follow-up comment on X, Musk clarified that while Optimus is already impressive today, it is still very far from its planned final form. This was quite surprising as the humanoid robot is already in initial production at the Fremont Factory. Even in its current state, Optimus also looks production-ready. Elon Musk even noted that Optimus robots are just walking around Tesla’s factories today around the clock, charging themselves as needed.

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Credit: @heydave7/X

With this in mind, one could wonder what Optimus’ final form could really be like. While the humanoid robot’s current iteration is already pretty sleek, perhaps Tesla is still developing Optimus until its appearance could mirror the robot’s static display model that the company showed off back in 2021. That Optimus model featured very human proportions and joints, making it look more like an android from a sci-fi flick than a humanoid robot with obvious mechanical parts.

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