Elon Musk liked a post on X that wrapped up a difficult day for Tesla. The post read: Elon re-enters wartime CEO mode. Musk also changed his X profile picture back to the Devil’s Champion costume he wore in 2022 for Halloween. The wartime post by Tesla insider @ChrisZheng001 comes after the company announced a major reduction to its global workforce by over 10%. This decision affects roughly 14,000 employees across various levels and departments. Musk also said goodbye to several long-term, key executives.
Musk’s Wartime Shift: A Strategic Necessity
The concept of a "wartime CEO" versus a "peacetime CEO" originates from Ben Horowitz, a renowned venture capitalist and co-founder of Andreessen Horowitz. In his book, "The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers," Horowitz describes a wartime CEO as a leader who operates under conditions of extreme stress and competition, making tough, fast decisions necessary for survival. This contrasts with a peacetime CEO focusing on expansion, culture, and development during more stable periods.
About every 5 years, we need to reorganize and streamline the company for the next phase of growth
Musk's recent re-adoption of the wartime CEO posture is a strategic maneuver as Tesla faces significant internal and external challenges. With the electric vehicle market becoming increasingly competitive and Tesla initiating major projects like the Robotaxi, Musk’s leadership style has aligned with these high-stakes circumstances.
Executive Departures, Overhauling Workforce
The company plans to overhaul its workforce, reducing its size by over 10 percent to eliminate redundancy and enhance productivity. Simultaneously, Tesla is pushing forward with significant technological innovations that promise to redefine its future. Such intense transformation and challenge periods necessitate a wartime approach, where decisiveness and direct action are paramount.
The layoffs coincide with the departure of several high-profile executives, including Drew Baglino, Senior Vice President of Powertrain and Energy, who had been with Tesla for 18 years, and Rohan Patel, Vice President of Public Policy and Business Development and an eight-year veteran of Tesla. Both executives have decided to leave the company to focus on personal priorities and have no immediate plans for future engagements.
The Role of a Wartime CEO at Tesla
Musk focuses sharply on navigating Tesla through these turbulent times as a wartime CEO. This includes making hard decisions on layoffs, streamlining operations, and prioritizing critical projects over others. Musk noted in his layoff announcement to staff via email.
There is nothing I hate more, but it must be done. This will enable us to be lean, innovative, and hungry for the next growth phase cycle.
However, adopting a wartime mentality may impact Tesla's corporate culture, potentially leading to a more hierarchical and less collaborative environment in the short term. Musk is also aware of that and addressed it in the same email, stating: For those remaining, I would like to thank you in advance for the difficult job that remains ahead. We are developing some of the most revolutionary technologies in auto, energy, and artificial intelligence. As we prepare the company for the next growth phase, your resolve will make a huge difference in getting us there.
Conclusion: Preparing for Tesla’s Next Big Leap
As Tesla continues under Musk’s wartime leadership, the emphasis is on rapid adaptation and the successful rollout of new technologies. The company's ability to manage these changes effectively and maintain its competitive edge in the electric vehicle market will be crucial. The ultimate goal of this wartime approach is to ensure that Tesla not only survives the current challenges but emerges stronger and more innovative, ready to lead the next phase of growth in the automotive and energy sectors.
This shift back to wartime CEO mode is a critical strategy for Musk and Tesla. It signals a period of intense focus and strategic recalibration aimed at securing Tesla’s position as a leader in the global push for sustainable transport and energy solutions.
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Following customer requests, Tesla has once again returned FSD Transfers for North America. This comes after some new details we received on FSD Supervised and Unsupervised at the recent Q1 2025 Earnings Call.
Vox Populi, Vox Dei … FSD Transfer is back
All countries (in NA), all S3XY + @cybertruck (excl Foundation Series & Launch Series)
This latest round of FSD transfers doesn’t have a specific time limit - so if you’re in the market for a new vehicle and were worried about transferring FSD from a HW3 vehicle - now is the best chance.
This transfer opportunity is applicable for any new vehicle purchases, including the Model S, 3, X, Y, as well as the Cybertruck. The only vehicles it doesn’t apply to are the Foundation-Series Cybertruck or a Launch-Series Model Y, which already come with FSD included.
If you’re conducting an FSD transfer, you’ll need to reach out to your Tesla delivery coordinator through the Tesla app to confirm you’re eligible and to get the process started.
Note that once you take delivery, FSD access is removed from your older vehicle, regardless if you plan to trade in your vehicle or keep it.
Canada and Mexico
For those in Canada and Mexico, there’s some good news. This opportunity is available for customers in those countries as well, however, new vehicle orders are currently paused in Canada and Mexico for unknown reasons.
Running Offers
There are also several other offers running in North America, with the country flags indicating which countries their available in:
0% Financing on new Model 3 Orders (60mo, 0.99% for 72mo) 🇺🇸
Deep Blue Metallic and Pearl White are currently free on a new Model 3 Performance 🇺🇸
Original Model Y Owners are receiving $2,000 off the purchase of a Refreshed Model Y 🇺🇸 🇨🇦 🇲🇽
Free Supercharging on the Model S and Model X 🇺🇸 🇨🇦 🇲🇽
Free Supercharging on the Foundation-Series Cybertruck 🇺🇸 🇨🇦 🇲🇽
Tesla’s long-awaited ambitions for a fully autonomous Robotaxi network powered by the futuristic, control-less Cybercab have finally started to take shape.
During their Q1 2025 earnings call, Tesla shared new details about its Robotaxi network, including that the network will start with new Model Ys. The Cybercab will join the network in 2026.
Robotaxi Plans
Tesla confirmed during the Earnings Call that it is on track to conduct the pilot launch of its Robotaxi network in Austin in June 2025. The first vehicles deployed for this service won’t be Cybercabs, as production for those is still in the prototyping stage.
However, Tesla did outline part of their plan for the Robotaxi network rollout. The initial aim is to begin driverless operations in Austin and then expand the service to other cities within the United States by the end of 2025. Interestingly, Tesla is also testing in California - albeit with safety drivers at this time.
Not a Tesla App
Looking further ahead, there are ambitious plans to ramp up operations to have millions of vehicles operating autonomously within the network by the end of 2026. While substantial revenue generation won’t be immediate, Tesla anticipates that the Robotaxi network will start to “meaningfully move the financial needle” in the second half of 2026.
Tesla also highlighted the current real-world benefits that FSD is already offering today—and will be able to offer to many more people in the near future.
These include reducing effort and time spent on daily commuting or transit, as well as improving mobility for customers with disabilities. Tesla plans to emphasize some of these community stories and wants to highlight the advantages and capabilities of FSD to improve people’s lives.
Robotaxi App and Robotaxi Vehicle UI
Not a Tesla App
After the call, Tesla AI also shared a video showcasing the Robotaxi interface in the Tesla app, as well as some footage that included the in-vehicle UI, at least as it currently stands.
The video shows Tesla employees using and testing Robotaxi features, although there are safety drivers in place. It looks like there is already a set of well-integrated UI mechanisms for both the front and rear screen when in Robotaxi mode.
Tesla is testing this today, and this network has already completed 1,500 trips, totaling approximately 15,000 miles. The system is being tested for vehicle allocation, mission control, and remote assistance operations.
Remote Operators
Inevitably, edge cases or unique situations will come up, and they will be difficult to handle. For these cases, where a Robotaxi vehicle gets stuck or requires assistance, Tesla will likely implement remote support.
While they didn’t completely confirm remote support operators on the Earnings Call, Tesla has previously posted positions for Teleoperator Engineers for Robotaxi, and an AI T=team member posted on LinkedIn about testing for remote assistance operations.
Scaling Up
Tesla initially intends to deploy a relatively small fleet in Austin, with its pilot beginning with about 10 to 20 vehicles on day 1. They will scale up gradually as the systems are validated and operations are refined, and the target is for anyone visiting Austin to be able to hail a robotaxi by the end of June or early July 2025.
Scaling Out
Not a Tesla App
Tesla’s confidence in scaling out stems from its generalized approach with FSD. The team believes that once FSD is thoroughly verified and capable in a few diverse North American cities, deploying it to any other North American city should be technically feasible. After all, driving regulations don’t vary much from one major city to another, except for things like no right turns on red lights.
The primary limitation with scaling out geographically is expected to be securing regulatory approvals in different regions and jurisdictions. While the principles of Tesla’s FSD are expected to apply globally, as with the China rollout, regulation will continue to be a considerable hurdle.
Cybercab
FSD Supervised ride-hailing service is live for an early set of employees in Austin & San Francisco Bay Area.
We've completed over 1.5k trips & 15k miles of driving.
This service helps us develop & validate FSD networks, the mobile app, vehicle allocation, mission control &… pic.twitter.com/pYVfhi935W
Tesla’s fully autonomous, two-seater vehicle, the Cybercab, is also being developed. While volume production for the Cybercab won’t begin until 2026, Tesla is already undergoing sample production validation. The first actual Cybercab builds are expected to be completed near the end of Q2 2025, and we’re excited to see if anything changes from the prototypes shown at We, Robot.
Tesla intends to build Cybercab at Giga Texas, and the production line is on schedule, according to Tesla. Cybercab production will not require a new building and will be built inside the existing Giga Texas factory.
Unboxed Method
Tesla's Shareholder Deck for Q1 2025 is now out, and we're 40 minutes away from the Earnings Call.
It seems Tesla won't be using the unboxed process for its more affordable model - which is a new vehicle.
The Cybercab’s production and low-cost methodology heavily rely upon Tesla’s innovative new unboxed manufacturing method. Tesla’s executive team mentioned that progress and implementation with this new manufacturing solution was going well, and it will be key to lowering the cost of production while considerably raising the level of automation.
Tesla has already achieved key milestones with this method, including successfully integrating large sub-assemblies and resolving challenges related to connecting portions of the vehicle's ceiling during the process. They have also successfully completed corrosion testing related to the new assembly method, as well as begun initial crash testing for the Cybercab.
All of that and more will eventually be incorporated into other vehicle production lines, and the Cybertruck is already benefiting from some aspects of these developments. With a final ambition of achieving a 5-second cycle time per Cybercab, Tesla has come a long way—but it still has quite a bit to go. They’ve managed to meet a 33-second cycle time for the Model Y at Giga Shanghai between two production lines, but 5 seconds per vehicle is quite ambitious.
Not a Tesla App
With all that said, between Robotaxi and Cybercab, there is a lot of interesting news coming from Tesla. We expect this to continue throughout the year as Tesla launches its network and then aims to release FSD Unsupervised to customers, with a potential price increase.
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