Any hope for a cheaper Tesla model may be on hold for now. But how about a Tesla taxi for your troubles?

Core Insights - Tesla has shifted its focus from developing a mass-market $25,000 model to prioritizing robotaxis, which are set to be unveiled in August [2][3] - This strategic pivot follows disappointing earnings, including a 20% decline in vehicle deliveries and a projected 40% decline in operating profit [2][3] - Elon Musk is reducing Tesla's workforce by 10% and is betting on robotaxis to revitalize the company's performance [3] Financial Performance - Tesla reported a 20% decline in vehicle deliveries for the first quarter [2] - The company is expected to announce its first revenue decline in four years, alongside a 40% drop in operating profit [2][3] Robotaxi Development - Musk has indicated that the robotaxi will require significant advancements in Tesla's Full Self-Driving (FSD) software, which currently necessitates driver supervision [3] - The vision for the robotaxi includes removing traditional controls like mirrors and steering wheels, allowing Tesla owners to convert their vehicles into robotaxis and potentially earn up to $30,000 annually [3][4] - Despite previous ambitious claims about autonomous cabs, skepticism remains regarding the timeline and feasibility of these plans [4] Market Demand and Analyst Opinions - Analysts suggest that focusing on robotaxis may be risky, emphasizing the importance of delivering a more affordable electric vehicle to meet consumer demand [5] - Wedbush analysts have stated that it is "crucial" for Tesla to launch a cheaper model within the next 18 months to capture market interest [5]