Some of the challenges facing Tesla include first-quarter profits down 9% year-over-year, a stressful few months for shareholders, and layoffs of about a tenth of its workforce. This is the result of factors affecting the electric vehicle industry as a whole. . But many of Tesla’s problems are unique to Tesla, as is the fact that Tesla CEO and co-founder Elon Musk is unique to the auto industry. He’s a Silicon Valley guy in the Detroit ecosystem who values innovation for its own sake, even when he could be focusing more on safety and quality. His ethos and approach to Tesla management is embodied in his pet project, the Cybertruck.
Although this vehicle fits the technical definition of a truck (it has a cargo bed), it looks like an origami version of the El Camino. Musk suggested that the stainless steel exterior could be bulletproof. Some owners say it’s rusty.
It’s not uncommon for new car and truck models to have some kind of defect, but the Cybertruck, of which only about 4,000 have been sold, was recently recalled. This is due to a sticking issue with the accelerator. This is like a gaping hole in a parachute. Problems inside the canopy. Some owners reportedly received a warning that “the vehicle may suddenly lose power, steering, or propulsion.” Also, be careful of the frunk (front trunk) and doors. There is no industry standard sensor to prevent the door from cutting off a person’s finger. (Cybertruck’s chief engineer said the steel won’t rust and said the company is working on the flanking issue.)
The company says Tesla has delayed the Cybertruck’s launch several times to fix design and manufacturing flaws, but Musk’s main focus is often on its sci-fi aesthetic and wanting to be seen as edgy. That seems to be an aspiration (perhaps literally so in the case of the Cybertruck, which is surprisingly curveless for an aerodynamic machine). This man has named his child XÆA-12, rebranded his Twitter account to X, and engages in endless acts of performative subversion by posting hostile memes. Traditional automakers also produce bold-looking concept cars, but they aren’t built for mass production, and unlike the retro-futuristic Cybertruck, they’re not a representation of the future, but rather a vision of future transportation. It is made with the means in mind. Like in the old days.
Musk’s approach to innovation is consistent with much of Silicon Valley’s approach. The technology industry is culturally focused on getting products to market quickly and worries about the impact of unfinished work, harmful features, and defects after consumer complaints or companies are sued. I am. “Move fast and break things” is intended as a battle cry against rigid institutions and norms, but sometimes it ends up breaking what is meant to be protected, such as consumer privacy and safety. Even democracy.
If your product is an entertainment app, the impact may be negligible, but if it’s a car or a rocket, the risks are terrifyingly high. Tesla gives the impression that it is accepting a certain amount of risk in exchange for innovation.
Those who respect Mr. Musk see him as a big risk taker and someone with a vision that no one else has. I think his risk-taking is best illustrated by an anecdote from Walter Isaacson’s biography. When Musk used to play Texas Hold’em, he would bet everything and keep losing, then put more money in and lose more rounds until he finally won one, said his former colleague Max. Levchin said.
Some people may hear this story and think, “What an interesting, high-stakes risk-taker!” Some people (me) think that risking everything is relative and that it’s easy to go all in when you can always buy more chips. Musk may have put most of his PayPal exit funds into SpaceX and Tesla because he saw a concrete opportunity. Also, the desire to be seen as cool and edgy may have led to an interest in fast cars and shiny rocket ships. Or maybe it was an impulsive decision based on emotion or the appeal of the moment. This won’t be the first or last time he makes such a big decision.
Musk entered the auto industry as an investor but had no industry expertise. Like many of his technology colleagues, he operates as if his knowledge and skills are inherently transitive in any business. He’s been repeatedly described as a genius, and the venture capitalists who fund his industry always claim that any talented founder can run any company. Tesla’s early success gave credence to this view. But recent events and increased scrutiny of all publicly traded companies have revealed how much his ego drives the company. He falsified his technical qualifications, fired or terminated experts who disagreed with him, and spent a great deal of energy trying to control X’s public persona and cheerleader right-wing trolls. (Shareholder Ross Garber says it hurt Tesla’s brand, and he’s right, considering one poll shows declining sales among Democrats.) Maybe.)
The Cybertruck is a sign of Musk’s inexperience as a person and as a CEO. It’s futuristic in an adolescent, unprincipled sense. This reflects the idea that rejecting expertise is not an obvious danger, but an attractively destructive one. It is not yet ready to exist in the adult world.
During last week’s earnings call, Musk promised to offer more affordable EVs by 2025. Musk has missed many deadlines, but cheaper electric cars are a sensible goal. He also promised something else. It’s a sentient humanoid robot, something experts say is impossible. He unveiled an early prototype of the robot, called Optimus, in 2022. The video showed the robots stumbling around on stage and performing pantomime dance moves. It had a retro-futuristic look based on silver. In short, it looked like a mobile recycled Cybertruck.
