Elon Musk’s sudden U-turn from months spent trying to get out of his agreement to buy Twitter isn’t sitting well with Tesla investors.
It’s no wonder why. Concern that the already-spread-thin chief executive officer was going to add even more to his workload were part of the reason the carmaker’s market value has taken such a hit since Musk disclosed back in early April that he’d become the social media company’s biggest shareholder. Tesla was a $1.18 trillion company then and is worth around $780 billion now.
There’s not a whole lot of overlap between accelerating the transition to sustainable energy at Tesla and crusading for free speech and eliminating spam bots at Twitter. But Musk’s followers are witnessing more than just mission creep across the many companies he controls. He acknowledged last week that it’s going on within Tesla, as well.
More than two hours into its AI Day event last week, Musk talked about wanting to change the perception Tesla is “just a car company.” Shortly thereafter, an attendee asked whether Tesla’s stated mission would be updated to reflect its outsize ambitions for Optimus, the robot project that’s progressed from dancing human to early-stage prototype humanoid in roughly a year.
“Optimus is not, strictly speaking, directly in line with accelerating sustainable energy,” Musk replied. “The mission effectively does somewhat broaden with the advent of Optimus to, you know, I don’t know, making the future awesome.”
A clear and concise mission has been one of Tesla’s biggest draws. Musk is apparently willing to gamble on moving away from this and into a vague new direction, despite the company struggling to meaningfully expand its existing non-automotive business line. Energy generation and storage revenue did tick up to $1.48 billion in the first half of this year, but that was just over 4% of total sales. This segment was more than 9% of Tesla’s revenue in 2017, the first full year after the company’s controversial acquisition of SolarCity.
That’s worlds apart from Musk’s repeated predictions that Tesla Energy eventually will be roughly the same size, or even bigger, than its car business. The extent to which the energy side of the company has fallen short so far helps explain why analysts haven’t been in a rush to put stock in the CEO’s declaration in April that Optimus ultimately will be worth more than Tesla’s car business.
