Former Stellantis CEO Says Elon Musk May Ditch Automotive Enterprise To Focus On Robots And Spaceships

Carlos Tavares has been out as CEO of Stellantis for a few 12 months nowand within the time away he busied himself by writing a e-bookentertainingly titled in French A pilot within the storm (“A Pilot within the Storm,” though you may maybe render “storm” as “tempest” and higher seize Tavares’ tenure). He has been commenting on the present state of the auto business and in a latest report he provided some ideas on Elon Musk and his future.

From Reside Mint (referencing Fortune and the French paper Les Echos):

“We won’t rule out that sooner or later, he’ll resolve to go away the automotive business to refocus on humanoid robots, SpaceX, or synthetic intelligence,” Tavares was quoted as saying. “Elon Musk could have left the automotive business,” he added.

That is an astute evaluation. Whereas Tesla has entered a bumpy interval, with out a lot enthusiasm for brand new and even promised merchandise (Hiya? New Roadster?), Musk appears pretty enthusiastic about Optimus robots and xAIand there is no query that SpaceX and particularly Starlink doubtlessly supply significantly increased future revenue margins than what Tesla has delivered.

Like many others within the business, Tavares singles out BYD for its speedy progress and the doubtless existential quandary the Chinese language firm poses for Tesla. “I am unsure that Tesla will nonetheless exist in 10 years,” he reportedly stated. “It is an progressive group, however they will be crushed by BYD’s effectivity.” That appears like an excessive prediction, however except Tesla can convert itself into being a market-leading supplier of autonomy and robotaxis, the corporate may settle into being only a reasonably worthwhile mass-market EV producer. And wrestle to take care of its place in opposition to a number of rivals.

To show Tavares and others naysayers fallacious, Musk may want to simply accept that he is nonetheless operating a carmaker and make just a few concessions to that reality. For instance, by introducing some interesting automobiles in several segments. A correct pickup truck, changing the unique and unsuccessful Cybertruck. A real three-row SUV. A revamp of the Mannequin Sin order that Tesla continues to promote a high-quality EV sedan that appeals to luxurious patrons.

Earlier this 12 months, Tavares gave an interview through which he gave the impression to be having fun with a cheerful post-Stellantis life in Portugal. Extra just lately, nevertheless, he appears to be settling some scores and attempting to cement his fame because the final empire builder within the automotive enterprise (Tavares discovered from Carlos Ghosn, the disgraced architect of the Renault-Nissan alliance and the empire-builder who confirmed Tavares the right way to do the constructing). Placing Musk in his place is a logical a part of that course of.

After all, Musk has form of constructed his personal empire. True, Tesla is not promoting vehicles on the identical degree as Stellantis, nevertheless it’s nonetheless sporting a $1.5-trillion market cap. Perhaps the robots and the robotaxis will make it price vastly extra. And we have not even gotten to SpaceX and its potential worth, or no matter xAI finally ends up claiming if the AI increase does not go bust. Then once more, no automotive firm is a certain factor without end. Tavares is not fallacious that Tesla may, sometime, go away.