Palo Alto / Beijing — Tesla CEO Elon Musk is reportedly doubling down on internal operations just as the company faces a worrisome slump in China’s electric vehicle (EV) registrations. In recent weeks, Musk has taken on an intense schedule involving product oversight, new technology development, and operational reviews, signaling his determination to address performance headwinds.
Musk’s Recent Push
- Following a hefty personal investment in Tesla stock — his first such open-market purchase in several years — Musk has made public how he’s spending his time. He’s been working late nights with engineering teams, particularly on the Optimus humanoid robot project and development of Tesla’s new AI5 chip.
- He also visited Tesla’s large “Colossus II” data center in Memphis to review progress on power and infrastructure systems. According to internal sources, he’s been conducting long stretches of cross-department meetings, focusing especially on AI and Autopilot features, production, delivery, and emerging product lines.
Trouble in China: Registrations Lag Behind
- In China, Tesla’s vehicle insurance registration numbers rose somewhat in the week of September 8–14, marking one of the stronger weekly totals in the third quarter. Still, the improvement is modest and does not mask a broader decline: year-over-year registrations are down, particularly for the flagship Model Y.
- August saw a drop in Model Y sales in China of around 13% compared with the same month last year. Year-to-date registrations across all Tesla models in China are down by roughly 7%.
- A recently introduced variant — an extended wheelbase, six-seat version of the Model Y (dubbed “Model Y L”) — has begun registering in small numbers, but so far it hasn’t offset declines in other variants.
Market and Investor Reactions
- Tesla’s recent stock price movement reflects mixed sentiments. Musk’s share purchase has been viewed by many investors as a show of confidence, especially in the face of regulatory credit changes and margin pressures.
- Analysts remain divided. Some see Musk’s intervention and work style as positive and believe upcoming product launches and innovations (especially in AI and robotics) could strengthen the company’s long-term case. Others caution that Tesla’s valuation may be running ahead of fundamentals, especially if China continues to underperform.
What’s Next and What to Watch
- Third-quarter global vehicle delivery figures will be closely watched. Anything below expectations could increase pressure on Tesla to adjust strategy.
- Observers will monitor whether the “Model Y L” variant catches on strongly. Its performance in China may be a critical test of Tesla’s ability to adapt to evolving consumer preferences.
- Tesla’s efforts in AI, robotics, and infrastructure (such as data center operations) could become increasingly important as the company attempts to diversify its revenue and reduce reliance purely on vehicle sales.
- Investors may also keep a close eye on how China’s competitive EV market — with strong local automakers — continues to evolve, and whether Tesla can maintain or regain ground there.
Bottom Line
Elon Musk appears fully engaged in trying to steer Tesla through a challenging period. While his recent hustle may reassure some stakeholders, the company still faces substantial headwinds in China. Whether Musk’s internal focus and innovation push can reverse the downward trend there is a central question for Tesla’s near-term prospects.
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