A big a part of Tesla’s (TSLA) progress story is constructed across the concept of the so-called Tesla Network, an independent car service that CEO Elon Musk has claimed will compete with the likes of Uber (UBER) and Lyft (LYFT) within the trip-hailing sector. Thus, the March 6 update of the Tesla website comes as one thing of a shock to these buyers who had been projecting substantial revenues from the Tesla Network within the close to future. The up to date web site has genuinely removed all reference to the Tesla Network.
It seems like Tesla is quietly backing away from the grandiose Tesla Network claims, which may lead to severe penalties for the corporate’s progress narrative, in addition to its inflated share value.
The removing of all reference to the Tesla Network is each sudden and stunning. Tesla did nothing to telegraph the change. Indeed, through the Q3 2018 earnings name last October, Musk was nonetheless waxing lyrical in regards to the capabilities and market potential of the Tesla Network.
“We completely see the long term as a type of a shared electrical autonomy, so that you would be capable of do ride-hailing or share the automotive anyway; you realize the type of a long-term model that’s most likely some mixture of like Uber, Lyft and Airbnb. There shall be Tesla devoted automobiles for experience hailing and any buyer will have the ability to share their automobile at will, similar to you share your house on Airbnb. So, it’s a mix of these two models, and I feel it is fairly obvious the place issues are headed long run. The benefit that Tesla can have is that we’ll have hundreds of thousands of vehicles within the subject with full autonomy functionality and nobody else may have that. So I believe that can find yourself placing us within the strongest competitive long run.”