Elon Musk: “Tesla Is No Longer Making EVs After Official Global Ban”

Tesla’s identity crisis is deepening. Amid a reported global ban on internal combustion vehicles, Elon Musk has shocked the automotive world by announcing that Tesla will no longer prioritize electric vehicle (EV) manufacturing—sending shockwaves through Wall Street, Main Street, and the tech world alike.

Investors were blindsided this week as Tesla stock tumbled 35%, marking one of the steepest declines in the company’s history. The sell-off was triggered after Elon Musk officially abandoned Tesla’s long-promised affordable EV—a $25,000 model once seen as the company’s ticket to dominating mass-market electric mobility.

This move, compounded by a collapse in China sales—down 50% year-over-year—has raised existential questions: Is Tesla still a car company, or has it become a tech speculation chasing AI dreams?

Once the undisputed king of EVs with an $800B market cap, Tesla now faces stiff competition from Chinese rivals like BYD, which sold over 3 million EVs in 2024, compared to Tesla’s 1.8 million. BYD’s dominance in affordability and volume highlights just how far Tesla has strayed from its original mission.

Meanwhile, Musk’s pivot toward humanoid robots (Optimus) and the Cybercab robotaxi—neither of which has a working prototype—has triggered backlash even among loyal fans. Analysts warn the company’s 105x P/E ratio is unsustainable without credible product roadmaps or delivery growth.

Musk now claims Tesla’s future lies in AI and autonomy, not cars. The highly hyped Cybercab, a fully autonomous ride-hailing vehicle, remains vaporware. Despite years of promises, Tesla’s Full Self-Driving (FSD) software still faces class-action lawsuits, safety probes, and mounting regulatory pressure.

Contrast that with Waymo, Alphabet’s autonomous division, which has quietly logged over 200,000 driverless rides in real-world urban environments—leaving Tesla behind in the autonomy race it once led.

Tesla’s troubles extend beyond Wall Street. A federal investigation into misleading FSD claims is underway, while Cybertruck’s early production units are already facing recalls over steering issues and battery inconsistencies.

Even worse, Tesla’s Q1 2025 delivery report shows a 13% drop, its sharpest year-over-year decline in five years. This underperformance starkly contrasts with the red-hot momentum of low-cost Chinese EV manufacturers rapidly scaling global operations.

For American auto workers in Michigan and Tesla’s investor base in California, this pivot is more than a tech experiment—it’s a threat to real jobs and real money. With Musk now prioritizing AI labs and robotics over vehicle assembly lines, many are asking: Is Tesla abandoning the real world for a theoretical one?