Connect with us

News

Tesla will ‘disappear’ or ‘lose 80%’ of its value, predicts NYU professor

(Credit: MotorTrend and CNBC Make it/YouTube)

Published

on

A Clinical Professor of Marketing at NYU has issued a strong prediction against electric car maker Tesla, stating that the Elon Musk-led company will likely lose 80% of its value or disappear completely. The prediction, the gist of which was posted on Twitter, has garnered polarizing responses among users of the social media platform. 

In a blog post, Galloway argued that while he believes Tesla has changed the world for the better, the company simply does not have the scale to compete in a well-run, low-margin segment that is the auto industry. “Dear Twitter trolls: yes … I’m an idiot, I can’t do, so I teach, and I don’t understand genius. It’s a tech/energy play. I get it… Save your breath. Yes, he is a genius, Tesla has changed the world for the better (I believe this). And … Tesla doesn’t have the scale to compete in a well-run, low-margin business — auto,” Galloway wrote. 

Galloway’s prediction against Tesla is quite interesting, considering that it seems to assume that the company has learned nothing about optimizing its operations from its Model 3 ramp in Fremont, CA. It would be interesting to see just how accurate the NYU professor’s statement will prove to be in the coming years, particularly as Gigafactory 3 goes fully online and the electric car maker starts manufacturing the Model Y. 

It’s not only Tesla that has received Galloway’s dire prediction. Apart from the electric car maker, the marketing veteran also argued that startups WeWork, Robinhood, Lyft, and OYO will lose 80% of their value or disappear completely as well. 

This is not the first time that Scott Galloway has issued a takedown of Tesla or its CEO, Elon Musk. Last year, the NYU professor admonished Musk, Twitter’s Jack Dorsey, and Alphabet’s Larry Page for “not acting like men.” In a video explaining his points, Galloway told the executives to “put down the blunt, put on a tie, and show up.” In what is a rather curious flash of irony, Galloway issued this takedown of Musk, Dorsey, and Page while not wearing a tie himself. 

Advertisement

“In our society, we no longer worship at the altar of kindness and character, we worship at the altar of innovators and billionaires. And our new heroes are people like Elon Musk, Jack Dorsey or Larry Page from Google. But, I would argue that they’re not acting like adults and they’re not acting like men. It feels as if we need a collective memo from all dads to Elon Musk, Jack Dorsey, and to Larry Page to one, put down the blunt, put on a tie, and show up. Respect for institutions, humility — this is what makes a man,” he said. 

Scott Galloway himself has founded several companies, including L2 Inc., a business intelligence firm that was sold to Gartner for an undisclosed amount. He has also served on the boards of several high-profile companies, including Eddie Bauer, Urban Outfitters, and The New York Times.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

News

Tesla won’t implement strange Grok character as Musk dispels rumor

It is nice to see that Tesla is not forcing this kind of character upon owners of their vehicles, especially considering that many people had a real problem with it.

Published

on

Tesla is not going to implement a strange character as a Grok assistant in its vehicles, as CEO Elon Musk dispelled the rumor, which seemed to truly invoke some quite polarizing reactions.

Yesterday, there was some controversy within the Tesla community as rumors of a Grok assistant, named Mūn (pronounced like Moon), being implemented into the vehicles started to circulate.

It had some legitimacy. It was initially posted by an employee, and it appeared to be a relatively confirmed development.

However, it really did rub some people the wrong way. Mūn was an Anime-style female dressed in promiscuous clothing, so it was not everyone’s style, and I’m sure not everyone’s significant other’s cup of tea. It seemed a very strange decision to add it, especially considering that, at the time, there was no confirmation to dispel the arrival of the Grok assistant.

That was until Tesla CEO Elon Musk stepped in to put the speculation to bed once and for all.

It was somewhat strange that this type of issue arose in the first place, but given that it was initially released by an employee, the entire situation is self-explanatory.

It is nice to see that Tesla is not forcing this kind of character upon owners of their vehicles, especially considering that many people had a real problem with it. Many owners did not shy away from the fact that they would like the option to opt out:

For now, Grok remains a part of Tesla vehicles, and personally, it is very nice to have in my Model Y to answer some quick questions I might have or even to entertain some people in the car.

Nevertheless, I am relieved I won’t have this character forced upon me in my vehicle.

Continue Reading

News

U.S. Judge dismisses lawsuit against SpaceX Starship Boca Chica launch site

The ruling found that the FAA had met its obligations in reviewing the potential environmental effects of Starship launches.

Published

on

(Credit: SpaceX)

A U.S. district court judge has dismissed a lawsuit brought by conservation groups challenging the Federal Aviation Administration’s approval of SpaceX’s expanded rocket launch operations in Boca Chica, Texas. 

The ruling, issued Monday, found that the FAA had met its obligations in reviewing the potential environmental effects of Starship launches.

FAA review withstands legal challenge

The lawsuit centered on whether the FAA properly assessed the impact of SpaceX’s operations on endangered wildlife, including ocelots, jaguarundis, and Kemp’s Ridley sea turtles, as noted in a report from The Guardian. The plaintiffs argued that noise, light pollution, and construction activity degraded the surrounding habitat, which also serves as nesting grounds for threatened shorebirds.

The lawsuit cited SpaceX’s April 2023 Starship test, which destroyed its launchpad and scattered debris across a large area. The blast reportedly ignited a grassfire and damaged wildlife habitats, including a bobwhite quail nest.

Judge Carl Nichols, for his part, ruled that the FAA had satisfied its obligation“to take a hard look at the effects of light on nearby wildlife.” The decision effectively cleared a regulatory hurdle for SpaceX, which has been working to expand Starship launch activity at its Boca Chica facility.

Advertisement

A continued ramp

SpaceX continues to scale its operations nationwide. Beyond Starship, the company is also seeking approval to nearly double Falcon rocket launches from Vandenberg Space Force Base in California, from 50 annually to 95. 

Former President Trump has also shared his intention to increase U.S. launch capacity, setting a target for substantial growth by 2030. Considering that SpaceX is by far the world’s dominant launch provider, Trump’s support for more launches will likely benefit the private space company.

For now, at least, the ruling should allow continued expansion at a time when Starship remains central to long-term goals such as Mars missions and NASA’s Artemis program.

Continue Reading

Elon Musk

Pope Leo XIV slams Elon Musk’s pay package due to misinformation (Opinion)

The Pope’s comments seem to be guided by a misunderstanding of what Elon Musk’s pay package entails.

Published

on

Edgar Beltrán, The Pillar, CC BY-SA 4.0 , via Wikimedia Commons

Pope Leo XIV has voiced sharp criticism of corporate pay structures, singling out Tesla CEO Elon Musk and other business leaders as examples of the widening gap between executives and ordinary workers. The pontiff warned that excessive wealth concentration could erode societal values and fuel global polarization.

Pope Leo XIV’s comments seem to be guided by a misunderstanding of what Elon Musk’s pay package entails, and the net positive it would result to TSLA shareholders and the world as a whole.

Pope Leo XIV’s comments

In his first interview since becoming pope in May, Leo XIV, the first US-born head of the Catholic Church, pointed to reports that Musk could become the world’s first trillionaire. As noted in a report from the Financial Times, Pope Leo XIV singled out Elon Musk as an example of the type of wealth that was undermining “the value of human life, of the family, of the value of society.”

“Yesterday, the news (arrived) that Elon Musk is going to be the first trillionaire in the world. What does that mean, and what’s that about? If that is the only thing that has any value any more, then we are in big trouble,” the pontiff stated. 

Musk was not the only executive who caught the ire of the leader of the Catholic Church. He noted that while Musk’s pay was problematic, it was only an example of the “continuously wider gap between the income levels of the working class and the money that the wealthiest receive.” 

Advertisement

“CEOs that 60 years ago might have been making four to six times what the workers are receiving, the last figure I saw, it’s 600 times what average workers are receiving,” he stated.

Borne out of misrepresentation

A look at Pope Leo XIV’s comments surrounding Elon Musk’s wealth suggests that he may not necessarily be familiar with how the CEO earns his net worth. Musk’s wealth is tied to his stakes in his companies, with a good portion of it coming from Tesla and SpaceX. Thus, quite unlike what the mainstream media narrative might suggest, Elon Musk does not necessarily have a giant vault of gold coins he is hoarding somewhere.

If one were to look at Elon Musk’s pay package, which would result in him becoming a trillionaire, one would see that the CEO could only earn his keep if he proves immense value to Tesla and its shareholders. 

His payout might be notable, but he would have to lead Tesla into becoming an $8.5 trillion company first. At this level, Tesla would likely be a notable force of good that would provide a net benefit for people worldwide. Ultimately, it appears that Pope Leo XIV’s comments about Musk may be borne from information gathered only through mainstream sources, some of which tend to have a notable slant against the CEO.

Advertisement
Continue Reading

Trending