Summary of "Tesla CRASHING Hard, and Elon Blames Everyone but Himself!" – Bulwark Takes

Release Date: July 25, 2025

Introduction

In this episode of Bulwark Takes, hosts JVL and Andrew Egger delve into Tesla's latest earnings report, unveiling a series of concerning developments for the electric vehicle giant. The discussion is laced with a sense of schadenfreude as the hosts dissect the company's faltering performance and Elon Musk's controversial leadership decisions.

Cybertruck Sales Decline

The conversation kicks off with a stark revelation from Tesla's recent earnings call:

JVL [00:55]: "For instance, the Cybertruck. ... in the second quarter they sold 4,300 of them. That is a 50% decline from last year."

This significant drop underscores the diminishing consumer interest in what was once hailed as Tesla's flagship product. Despite previous disastrous sales, the Cybertruck's performance has worsened, shaking investor confidence.

Impact of Production Scaling

JVL highlights Tesla's ambitious production plans that now seem misaligned with actual sales:

JVL [01:30]: "They have scaled up production capacity for the Cybertruck so that they are prepared to be doing 250,000 of these a year. ... they're never selling 20,000 of these things a year again, let alone 250,000."

The mismatch between production capacity and sales projections suggests impending financial strain, as Tesla grapples with repurposing resources allocated for the Cybertruck.

New Model Promises and Delays

The hosts express skepticism over Tesla's commitments to launching a new, more affordable model:

JVL [03:26]: "Tesla had promised that it would have a new model on sale that would be its cheapest car... there is no model, there are not even pictures of this model."

Andrew echoes these doubts, questioning Musk's ability to deliver within the competitive automotive industry:

Andrew Egger [04:40]: "Even before all of the new problems with Musk... he was never really the guy who was going to necessarily excel at running, like, a real car company."

Tesla’s Financial Health and Carbon Credits

A critical examination of Tesla's financials reveals heavy reliance on carbon credit sales:

JVL [08:13]: "Tesla's profit margin was due entirely to its resale of carbon credits. ... one of the things that Trump is doing is phasing those out."

This dependency poses a significant risk, especially with impending policy changes that could eliminate this revenue stream.

Robo-Taxis and Future Prospects

Looking forward, Tesla's hope rests on the profitability of its robo-taxi division:

JVL [12:19]: "They say they could have a rough few quarters until the robo taxis begin generating profits next year."

However, both hosts express doubts about the viability and safety of these autonomous ventures, noting Tesla's lag behind competitors like Waymo.

Elon Musk’s Shareholding and Control

The discussion takes a critical turn towards Elon Musk's governance:

JVL [12:19]: "Musk... believes that the company should give him more shares so he can have more control so that nobody could stop him from running it into the ground."

Andrew highlights the problematic aspects of Musk's leadership and its impact on Tesla's stability:

Andrew Egger [13:46]: "This is one of the most... ludicrous... blips in the whole market."

Conclusion

The episode paints a bleak picture of Tesla's current standing, marred by declining sales, overambitious production goals, financial vulnerabilities, and questionable leadership decisions. The hosts conclude with a pessimistic outlook, suggesting that unless significant changes occur, Tesla may struggle to maintain its market position and fulfill its lofty aspirations.

Notable Quotes

• JVL [00:55]: "In the second quarter they sold 4,300 of them. That is a 50% decline from last year."
• JVL [03:26]: "Does Toyota say, we are going to have a new subcompact out in June, and then June comes and goes... I don't think that's how it works in this industry."
• Andrew Egger [04:40]: "Elon Musk was never really the guy who was going to necessarily excel at running, like, a real car company."
• JVL [08:13]: "Tesla's profit margin was due entirely to its resale of carbon credits."
• JVL [12:19]: "He believes that the company should give him more shares so he can have more control so that nobody could stop him from running it into the ground."

This comprehensive analysis provides listeners with an in-depth understanding of the challenges facing Tesla, as discussed by JVL and Andrew Egger, encapsulating the episode's critical take on the company's trajectory and leadership.