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Tesla has reached a potentially lethal moment in its history, and it isn’t solely due to CEO Elon Musk’s political radicalization. Years of design and technology stagnation have led to a languishing model line and outdated technology. Back in 2023, I wrote that the beleaguered carmaker should aspire to survive and become yet another car manufacturer. Now that objective feels more pressingand distantthan ever. The company just announced a new quarter of abysmal vehicle sales. Teslas first quarter of 2025 was a disastera 71% decline in net income compared to the same quarter last yearexcept for a better-than-expected gross margin thanks to its energy business. Its EV sales cratered, with a 13% sales drop in relation to the previous quarter. Worse yet: The company would have posted a loss if it werent for the government’s zero-emission credits. Predictably, Musk tried to distract from all of this with more of his usual empty promises about self-driving cabs and magical robots. During the Q1 financials conference call, he declaredwith a faltering train of thoughtthat he remained optimistic about the future of the company. A future that is based on a large number of autonomous cars and autonomous humanoid robots. He said that he expects autonomy to start moving Teslas financial needle in mid-2026. Musk also claimed Teslas humanoid robot Optimus will be working at Teslas factories by years end. I feel confident we will make a million units per year in less than five years, maybe four years, he said. Tesla will be the most valuable company in the world by far if we execute well, he declared after a pause. Then he said it will be maybe as valuable as the next five companies combined. Delay tactics Is anyone falling for all this bluster? Im not. You shouldnt either. Musks promises have a tendency to end in the graveyard of delusions, some of them literally buried, most delayed for many years. During the Cybercab reveal in October 2024, he promised the two-seater with scissor doors and no steering wheel by 2026, a claim that was met with derision. Remember that he promised robotaxis for 2020. The company declared in its Q1 report that the Cybercab is scheduled for volume production starting in 2026. Thats very unlikely to happen, as fully autonomous Tesla cars have not been approved anywhere, and they are far from going through the certification process needed for volume to happen. Waymo is still progressing slowly in its approval process and it’s years ahead of Tesla. Full Self-Driving manages just 489 miles between disengagements, dwarfed by Waymos 17,311, notes industry expert Ashok Elluswamy. To achieve human-level safety, analysts say, Tesla needs a 1,400x improvement. Which is why Musks claim of launching unsupervised Full Self-Driving (FSD) in June 2025 sounds so absurd. Teslas FSD currently remains a beta experiment linked to federal probes and crashes. Meanwhile, Volvo and Mercedes currently deploy safer autonomous tech made by Waymo, a company that already has self-driving cabs on the road. Even if Musk could actually deliver on his Cybercab promise, Teslas internal analysis admitted Robotaxis would hemorrhage cash. According to a report by The Information, the companys own executives warned Musk that the payback around FSD and Robotaxi would be slow . . . very, very hard outside the U.S. He ignored them. Instead, he canceled the Model 2the alleged name for an affordable Tesla modelto chase the geofenced 5mph Disneyland ride of Robotaxis, as critic Dan ODowd mocked. The company is now implicitly recognizing it made a mistake in its first quarter financial report, saying that more affordable options are as critical as ever. No wonder its top designers and engineers are leaving the company. Rotting design and cybertruck carnage During the call, Musk said he will focus more on Tesla and less on the government, blaming people benefiting from fraudulent government money for the protests against him. In his mind, these fraudsters are responsible for the company’s ongoing disaster, not him. But that shouldnt distract from the real reasons for the Teslapocalypse. This didnt happen because of Musk’s support for Donald Trump, though it did accelerate it. Even without Musks recent behavior, Tesla would still suffer from its preexisting condition and the bare facts of its business model: stale design, no forward vision, no technolgical innovation. This is a trifecta for failure. Tesla lacks what it needs to save itself from the current realities of the automobile market. Chinamainly BYD and brands like Xiaomi and Xpenghas established itself as the clear design and technological car manufacturing leader in the world, resulting in its top spot in global sales, despite U.S. tariffs. And in Europe, Japan, and South Korea, the old brands have finally risen to the challenge, with BMWs EV sales in Europe overtaking Tesla for the first time in February of this year. Teslas collapse began with its rotting design DNA. The Model S is 10 years old now, Adrian Clarke, a veteran car designer, told me in 2023. Its other carsModels 3, X, and Ylook like spitting-image cousins. Its 2025, and except for a lackluster refresh of Model Y so unappealing that the company has just announced a zero-interest five-year buying plan, nothing has changed. Teslas lineup remains a museum of stagnation in an industry where everyone refreshes models yearly. Most manufacturers would replace a model after about seven or eight years, Clarke told me. But Tesla clings to a decade-old template, a strategy former Jaguar designer Jeremy Newman calls strategically irresponsible. How can anyone expect the market to keep buying Teslas when every other manufacturer is releasing new models, like BYDs Yangwang U7 and its magical suspension system that eliminates all bumps. Then theres the Xiaomi SU7 Ultra and its supercar features that come at regular sports car prices. Or the BMW iXthe best 2024 EV according to Consumer Reports. With this in mind, can anyone truly be surprised to see Teslas U.S. market share plummeting from 79.4% in 2020 to 65.4% in 2022 to 48.7% in 2024? Only the most deluded fanboys and Tesla bulls could ignore this. Everyone else is seeing the writing on the wall. The Cybertruck epitomizes Musks delusional leadership. When it launched, industry experts criticized and warned about its design. Cold, sterile, and almost repulsive, legendary designer Frank Stephenson spat. Everyone I know thought theres no way theyre gonna get that into production, Clarke said at the time. They were partially right. The trucks dead straight panels defied manufacturing logic, leading to countless recalls for razor-sharp frunks that slice fingers, accelerators that stick mid-drive, and bulletproof windows that can shatter from hail. By June 2024, more than 11,000 units faced recalls for failing wipers and loose trim. Sales cratered: After peaking at 16,692 units in Q3 2024, sales dropped to 12,991 in Q4a 22% decreaseand fell further to 6,406 in Q1 2025, marking a 50% decline from the previous quarter. Can it be saved? Now you can add cratering financials to this technological and design mayhem. Teslas Q4 2024 deliveries hit a record 495,570 vehicles, but the cost was catastrophic. Price cuts and 0% financing slashed profit margins, with average sales prices plunging to $41,000the lowest in four years. Annual deliveries fell 1.1% to 1.79 million, Teslas first decline since 2011. Meanwhile, BYD sold 595,413 battery electric vehicles in the same quarter. Analysts called Teslas performance an unmitigated disaster masked by temporary incentives. Today confirmed what we knew. Teslas first-quarter 2025 revenue came short of the estimated $21.1 billion at only $19.3 billion. Auto revenue fell 20%. Its the worst quarter in almost three years, and the companys first-ever year-to-year drop in sales. Sure, the protests at stores and vandalism of Tesla lots fueled by Musks polarizing politics didnt help this situation. But at the end of the day, if you give consumers the choice of buying a new EV design with superior technology at a lower price or a tired Tesla model, they will choose the former. Having a better product at the best price possible is the most important part for the long-term survival of any company. Talking to CNBC, Patrick George, editor-in-chief of InsideEVs, said the biggest operational challenge in the latest quarter was the nuts-and-bolts job of being a car company. For a car company that runs on, you know, car sales, things like robocabs and humanoid robots are a distraction. Its no wonder that Teslas stock plummeted since December. Meanwhile, the rest of the market keeps innovating at record speeds. BYDs flash-charging techrefueling EVs in five minutesand its Blade battery, hailed as the worlds safest, have left Tesla in the dust. The Xiaomi SU7, a luxury sports sedan priced like a Toyota, sold 88,898 units in 24 hours, proving Chinese brands can out-innovate and undercut. In Europe, BMW and Mercedes leveraged 60% customer loyalty to reclaim the luxury segment. People want cars that fit into their lives, Clarke told me two years ago. It was an industry lesson that Musk ignored. Legendary investor and economist Bruce Greenwald warned about all of this in 2021, way before Musk descended into the political mud: Twenty years from nowyou really think that [Tesla is] going to dominate the auto market? Not a chance. He was wrong by almost two decades. After todays results, there are only two questions in my mind. First: How much more value will Musk oblterate before shareholders eject him? And the other, more pressing question: Will the next CEO be able to save the company? Tesla needs to do something radical right now. And that should start with Musk leaving the company.
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The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. With the U.S. government reducing and, in some cases even freezing federal funding, many nonprofits will need to seek other sources of philanthropic support. According to the 2024 Giving USA Report, corporate charitable giving in the U.S. totaled $36.6 billion in 2023, making it the fastest-growing nonprofit revenue source over the past five years. But less quantifiable is the value many corporate funders provide in addition to financial support. Most corporate philanthropies are not interested in merely signing a check or attaching their logo to an event. Instead, they are looking for ways to strategically collaborate with organizations and the communities they serve through time, talent, and treasure. The 3Ts: Time, talent, and treasure Companieswantto make a difference in the places wheretheiremployees and key stakeholders live, work, and play. One of the greatest corporate resources that the countrys 1.8 million nonprofits can tap into is time, especially through skillsand service-based volunteer opportunities for companies employees. A 2023 global study conducted for Ares Management by Edge Research found that employees who volunteer through their workplace are twice as likely to recommend their organization to job seekers than those who dont volunteer. In addition, do not overlook the ways your nonprofit can benefit by leveraging those employees talents. Nonprofits can request pro bono support in the form of guidance and counsel from employees who are subject matter experts and will find that employees are generally more than willing to share their skills at no cost. Of course, it is critical for nonprofits to pair the benefits of time and talent with treasure, i.e., the funds needed to help them increase their reach and impact. But building connections by first seeking employees time and talent can actually strengthen grant applications and unlock corporate fiscal support because theres already corporate buy-in. 5 ways to unlock corporate support Here are five ideas to increase the likelihood that corporate philanthropies will collaborate with and fund your nonprofit. 1. Align with the corporate mission Understand the funders giving priorities, funding cycles, and core values. Make sure you can answer these questions: Does your nonprofit share a similar mission, vision, and strategic objectives? What other nonprofits has the company previously supported? Was the companys support in the form of time, talent, treasure, or some combination of these? 2. Make a connection Introduce yourself to the corporate giving or philanthropy officer by sending a quick email or LinkedIn message. Share information about your organization and how it aligns with the companys philanthropic priorities and values. Include two potential ways you could collaborate, but do not send a proposal until you have had a chance to learn more about the company and are certain there is alignment. 3. Build partnership Before asking for funding, establish a relationship with the company. One method with proven success is connecting through a project that allows the companys employees to identify with your nonprofits mission through volunteerism. The more you can communicate the importance of your organizations work to a potential corporate funders employees and engage them, the greater the opportunity for you to make the case for grant support or sponsorship. 4. Be clear, concise, cogent, and compelling Be clear about the type of support you are seeking and be able to talk about the potential geographic and demographic reach of what youre proposing for support. Share your past accomplishments and proven impact, and be very clear about the societal challenge you are seeking to solve with the requested funding. Keep in mind that proposals that introduce new approaches to solving long-term problems are often favored. 5. Engage in storytelling Describe what success will look like and explain how you will communicate that success to the world. Showcase the story you will tell about your nonprofits achievements and how your funder played a role in that success. As we head into a sustained period of change, keep in mind that corporate philanthropies are looking to partner with organizations that address societal challenges and bring meaningful benefits to their local communities where they do business. When nonprofits bring partnership opportunities that demonstrate a deep sense of purpose and compelling vision, they can unlock a treasure chest of benefits. Michelle Armstrong is president of the Ares Charitable Foundation.
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The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. Late for a meeting across town, you check a map app for the fastest route, toggle to the citys transit site for schedules, and work out options for traveling the last mile from the train station to your destination. You think through the logisticsmetro card, e-tickets, scanning app, method of paymentfor each leg of the trip. Then you open a ride-hailing app as backup. MaaS: Cities slicker Its a fragmented, frustrating experience, which has prompted an innovative response. Mobility-as-a-service (MaaS) integrates various modes of transportation into a single, seamless platformusually an app or website. In some cities its already a reality. Platforms like Jelbi in Berlin,or Floyain Brussels are prime examples of MaaS in action, and similar schemes have been established in cities as far apart as Sydney, Bangalore, Abu Dhabi, and Denver. By aggregating data across different transport services, MaaS apps offer users a unified platform to plan, book, and pay for travel while also providing cities and businesses with critical insights into mobility patterns. At their best, they give users greater flexibility, streamline costs, and mitigate traffic congestion and carbon emissions by reducing the need for car trips. Theyre not without their challenges. One of the first MaaS apps, Helsinkis Whim, folded last year because of problems with its subscription model. MaaS adoption is often impeded by technical, operational, regulatory, and human challenges, too. These include issues around data integration and standardization, API and platform compatibility, competition between service providers, and poor user experiences coupled with slow shifts in user behavior. The direction of travel is clear, though: Urban mobility is getting an upgrade through innovations which prioritize seamlessness and enhance interoperability. Journey to enlightenment The potential of MaaS extends beyond convenience. The real power lies in the insights generated by millions of journeys. These insights are turbocharged by the application of AI to the underlying data, helping cities to optimize transit routes, reduce inefficiencies, and guide infrastructure investments. They also enable businesses to analyze commuting trends, predict workforce needs, and enhance sustainability efforts by measuring and managing their carbon footprints. Over the past decade, integrated transit payment systems have encouraged the use of sustainable public transport worldwide by allowing commuters to seamlessly switch between buses, subways, and trains with a single payment method. That breakthrough in convenience helped drive multimodal transit adoption in cities from London to Tokyo. MaaS builds on that foundation, expanding the model through digital mobility wallets and app-based platforms that link public and private transportation in a fluid transit experience. Through advanced data analytics and AI, for example, MaaS providers can forecast demand surges, adapt dynamic pricing in real-time, and facilitate predictive maintenance for public transportation fleets. By standardizing and sharing mobility data across operators, cities could reduce bottlenecks, enhance safety, and create more user-centric urban transportation policies. Tokenization: A ticket to ride Tokenization is a proven way to secure and streamline payments. It replaces sensitive payment card details with a unique, randomly generated codethe tokento protect the actual cardholder information during transactions. This is what happens when you tap your phone to pay, for example. By assigning digital tokens to mobility services and transactions, MaaS platforms can create more secure, flexible, and interoperable experiences. Tokenization could enable: Seamless multi-modal payments: Users could store a universal mobility token in their digital wallet, allowing them to switch between transit options effortlessly. Personalized mobility subscriptions: Employers and cities could offer customized MaaS packages tailored to individual commuting habits, reducing reliance on private vehicles. Enhanced security and privacy: Tokenized transactions would minimize the need for sharing sensitive payment details across multiple platforms, addressing concerns around data protection. If integrated effectively, tokenization could accelerate MaaS adoption by improving user trust, simplifying transactions, and unlocking new business models for transportation providers. No more juggling four apps just to get to workone token, one tap, every route. The road ahead The trajectory of MaaS adoption will be shaped by how well data is harnessedboth to enhance user experience and to drive public and private sector innovation. Advances in AI-driven analytics, new tokenization use cases, and real-time data sharing could unlock the full potential of MaaSmaking mobility smarter, more efficient, and more adaptable to future urban challenges. By embracing the power of data and emerging technologies, MaaS could fulfill its potential as a transformative force in urban mobility. Ken Moore is the chief innovation officer at Mastercard.
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