Tesla Robotaxi Rumors Fueling Hollywood Anger at Elon Musk

In late August, Bloomberg reported rumors that electrical automaker Tesla plans to disclose its forthcoming autonomous robotaxi — anticipated to be referred to as the Cybercab — on Oct. 10 on the Warner Bros. studio lot in Burbank. This automobile will reportedly be purpose-built to operate solely as a self-driving cab. As such, it is not going to comprise an accelerator, brake pedals or a steering wheel, and might be hailed through a particular Tesla app. Every week or so in the past, sources shared a picture of a small, canary-yellow automobile trolling the Warners lot, tailed by Tesla manufacturing automobiles, main some to recommend it was a camouflaged robotaxi.

Overstatements, obfuscations and damaged guarantees concerning the revealing and manufacturing of future Tesla merchandise — a “semi” tractor-trailer, a brand new sporty roadster, an entry-level automobile, this robotaxi — are so frequent as to be customary working process. Since Tesla solely eradicated its public relations division 4 years in the past, The Hollywood Reporter can’t verify that this occasion (already postponed as soon as this 12 months) will happen in any respect.

However, if it does transfer ahead, the worldwide launch of a brand new Tesla at Warners is for certain to lift eyebrows in Hollywood and draw scrutiny towards the chummy relationship between the carmaker’s more and more controversial CEO, Elon Musk, and Warners’ embattled chief government, David Zaslav. (Warner Bros. declined to touch upon the rumored robotaxi reveal.) As Musk has continued his trajectory into the MAGA-verse — pledging allegiance to right-wing conspiracies, amplifying racist and antisemitic messages, disparaging trans folks, together with his personal daughter, and endorsing Donald Trump — his inventory in Hollywood, and that of his model, has plummeted.

“Elon may be very outspoken, and his political beliefs will not be as widespread within the leisure business,” says Debbie Levin, CEO of the Environmental Media Affiliation (EMA), which promotes messages, actions and merchandise to create constructive environmental change in Hollywood.

The model’s present diminished standing in Hollywood is especially notable when in comparison with a decade in the past, when Tesla merchandise started penetrating the business. “The Tesla grew to become the ‘It’ automotive when it comes to electrification,” Levin says. “In case you might spend $100,000 on a automotive, that was kind of the way in which to go to point out that you simply care in regards to the setting.”

Because the model expanded, Southern California — lengthy on the forefront of vehicular tendencies — grew to become one in every of its largest markets. “Once you’re in Hollywood, driving across the studios, that’s just about all you see,” says Ed Kim, president and chief analyst of Auto Pacific, a SoCal-based mobility analysis agency. “It’s Teslas in all places.”

Shifts at the moment are occurring in native shopper curiosity and buy habits. “Definitely now we have seen gross sales drop considerably at Tesla this 12 months,” Kim says, citing a virtually 25 % drop in gross sales within the Golden State this quarter alone. That is notable not simply because the model is shedding market share as established luxurious automakers like Audi, BMW and Mercedes, and compelling upstarts like Polestar, Lucid and Rivian, diversify their EV choices, however as a result of, in an increasing EV market, Tesla is shrinking. “Regardless of all of the headlines, EV gross sales are nonetheless rising. They’re simply not rising on the similar pace that they had been earlier than. However Tesla is definitely shedding gross sales,” Kim says. “In actual fact, Tesla is among the few EV makers that has been shedding quantity, not simply shedding market share.”

This decline will be correlated with Musk’s latest rightward flip and associated on-line antics. “Rejection of Tesla not too long ago spiked and continues amongst Democrats. They need nothing to do with Tesla,” says Alexander Edwards, president of Strategic Imaginative and prescient, a Southern California-based consultancy that conducts lots of of 1000’s of in-depth psychographic surveys with new automotive patrons yearly. “And there aren’t any hidden Republicans which can be shopping for these. That simply doesn’t exist.”

Edwards cites latest proprietary survey knowledge demonstrating that the variety of potential new automotive patrons who would take into account a Tesla for his or her subsequent buy fell by practically half since 2022, and the quantity who would undoubtedly not take into account a Tesla elevated by practically two-thirds, with the steepest declines occurring this summer time as Musk cozied as much as Trump. “And people numbers are nonetheless transferring in that detrimental route,” he provides.

Based on Edwards, such attitudinal shifts can take time to translate into shopper habits within the automotive class, as a result of — in contrast to in non-durable shopper items like beer or quick trend — the acquisition cycle happens sometimes. “Some folks which can be in Teslas now are so indignant, they’re destroying their leases and strolling away. Nonetheless, most individuals don’t have the monetary functionality,” he says. “So, we’re not going to essentially see that magnitude till the following three years. However come the following buy, you higher consider there’s going to be that exodus if issues don’t change quickly.”

In fact, Tesla has by no means been a conventional or predictable enterprise, and shopper response might not observe odd tendencies, even within the progressive leisure business. “There’s a large Tesla cafe, the Tesla Diner, that’s being in-built L.A. proper now,” Kim says. “And there’s all types of buzz and pleasure round that, even though it’s smack in the course of Hollywood.”

Nonetheless, it appears fairly seemingly that there might be an enduring impression in response to Musk’s provocations, particularly in Hollywood. And, given the business’s affect over shopper habits, this impact will seemingly develop into extra pervasive — nationally, and even globally, says Edwards. “When you’ve got that degree of hubris, you do and say the dumbest issues. And I might say that Trump and Elon are very related. They do and say among the dumbest issues,” he says. “If Elon continues on this path, he’s going to search out himself with out a firm within the U.S.”