Bloomberg Surveillance · Wednesday, July 22, 2026
Tesla's growth as a car company is reportedly slowing, with a shift towards the mass market and a notable trend of owners trading in their Teslas for Toyota hybrids. This indicates a move away from the luxury segment, impacting margins. Analysts suggest that linking up with SpaceX could provide Tesla with new revenue streams and ways to monetize its AI capabilities, which have not yet translated into significant financial returns.
“Tesla as a car company, is not really a growth story anymore. They are contracting or they had a good quarter, but the previous two years they were down in car sales.”
“And they're not even a luxury car maker anymore. They stopped making models, they stopped making Model X. Their most common trade in now is a Toyota, a Toyota hybrid, so meaning people come with people trade in their Tesla Toyota. Now that's what's happening, Edmonds tells us today.”
“Wow, people are getting out of Tesla's and going into Toyota hybrids. So they're a mass market car maker. Now that's why the margin shrink. Right, You're no longer run the luxury business.”