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“Unmanned Taxis” Dream Sparks Chaos Inside Tesla?

Tesla's strategic transformation towards driverless cabs is facing the twin challenges of a slumping stock price and internal chaos.

Currently, Tesla (TSLA) is striving for a strategic transformation towards achieving autonomous taxi services, but is facing dual challenges of declining stock prices and internal turmoil.

Leadership Style and Internal Turmoil: Tesla CEO Elon Musk is renowned for his high standards and frequently changing directions, leading to internal chaos within the company. Since the beginning of this year, Tesla's stock has plummeted by over 40%, partly due to confusion in product decisions and a decrease in sales volume. Additionally, Tesla's position in the Chinese market is under threat, with the cancellation of a meeting with the Indian Prime Minister and the revocation by a judge of a $56 billion compensation plan, all indicating the company's instability.

The Future of Autonomous Taxi Services: Musk is pinning hopes on the concept of "autonomous taxi services," also known as Full Self-Driving (FSD). The plan has been discussed for at least eight years, but necessary infrastructure has not yet been established, nor has it received relevant regulatory approval. Moreover, the planned $25,000 mass-market electric car has been shelved, sparking concerns among investors and insiders.

Uncertainty in Corporate Strategy: Musk reportedly plans to lay off over 10% of the workforce and emphasizes the company's full commitment to advancing FSD technology. This strategic shift has left employees feeling uneasy, with many key executives resigning as a result. Tesla's FSD technology has been criticized for not living up to its name, requiring continuous monitoring, and there remains a gap between Musk's claims of full automation.

Tesla is facing formidable challenges that require addressing internal management issues and technological hurdles to maintain its competitive edge in the electric vehicle market.

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