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← Newsroom/EVs & hybrids

Tesla profits squeezed by big bets on AI, merger with SpaceX not ruled out by Elon Musk

Compiled by ADME Newsroom from 1 source

First reported by The Driven · 23 July at 2:26 pm

Who's covering this — 1 article

EV specialists
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Image: The Driven

The quick read

Full coverage

The Driven·EV specialists·23 July at 2:26 pm

Tesla profits squeezed by big bets on AI, merger with SpaceX not ruled out by Elon Musk

Tesla is now pulling in more than $US100 billion in revenue per year, but its margins are being crunched by its big bets on AI and FSD and robots. The post Tesla profits squeezed by big bets on AI,…

Read at The Driven →

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The quick read

  • Tesla's revenue exceeds $US100 billion per year
  • Tesla's margins are being impacted by investments in AI and FSD
  • Elon Musk hasn't ruled out a merger with SpaceX
  • Tesla's big bets on AI and robots are affecting profitability

For dealers: Australian dealers should be aware of the potential impact of Tesla's financial situation on the EV market and its competitors

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

Tesla's significant investment in AI and FSD is likely to lead to increased competition in the EV market, potentially affecting demand for other brands

What it means for the order bank

The crunch on Tesla's margins could lead to a slowdown in production, resulting in longer wait times for customers and potentially driving them to consider other EV options

Tesla's financial situation may lead to a shift in pricing strategy, with potential price reductions to maintain market share and drive sales

Competitor response

Other manufacturers, such as Hyundai and Nissan, may see an opportunity to gain market share by offering more competitive pricing or features, putting pressure on Australian dealers to review their pricing and marketing strategies

The potential merger with SpaceX raises questions about the future direction of Tesla and its impact on the automotive industry, with possible implications for dealerships and their relationships with OEMs

Taking action

This week, dealers can review their EV offerings and pricing to ensure they are competitive in the market, and consider offering alternative models or promotions to attract customers who may be waiting for Tesla vehicles

Go deeper — ADME analysis

  • VFACTS May 2026: a Tesla outsells every ute, and the market keeps shifting →
  • NVES and the FBT change: the two policies quietly reshaping what Australia buys →