Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk sharply criticized New York City Mayor Zohran Mamdani’s proposal to establish city-owned grocery stores across the five boroughs on Monday. Musk labeled the initiative as theft and called Mamdani a "thief and a liar," arguing that advancements in artificial intelligence and robotics will render such government programs obsolete by delivering free goods and services.

The controversy erupted after All-In Podcast host Jason Calacanis shared a video on X showing Mamdani discussing a Request for Proposal (RFP) to select operators for the stores based on Diversity, Equity, and Inclusion (DEI) principles. Calacanis argued that the administration lacked business acumen, noting that Costco Wholesale Corp (NASDAQ:COST) already operates with minimal profit margins in groceries.

Musk’s Rebuttal on X

Responding to Calacanis, Musk stated that the city’s efforts "won’t matter" because technology would supersede them. "AI & robots will actually deliver the free goods & services that those thieves pretend to offer," Musk wrote, adding that the administration was "actually stealing from others." In a separate post, he accused Mamdani of seeking a "propaganda tool to undermine the free market" while ignoring logical arguments.

Broader Vision for AI and Robotics

Musk has frequently asserted that productivity surges from AI and robots could outperform Earth’s total output. He previously stated that Tesla’s Optimus humanoid robot and space-based AI might generate such wealth that governments would need to issue money to citizens, effectively rendering currency irrelevant. This vision aligns with Tesla’s recent operational shifts, including transitioning its Fremont, California facility from producing Model S and X vehicles to manufacturing Optimus robots. The company targets annual production of 1 million units, with at least 40 production lines planned due to the robot’s complexity.

Competitive Landscape

While Musk promotes his technological roadmap, competitors are advancing similar initiatives. BYD Co. Ltd. (OTC:BYDDY; OTC:BYDDF) recently unveiled its first humanoid robot, scheduled to debut later this month. Meanwhile, critics remain skeptical of Musk’s predictions. Sen. Bernie Sanders (I-VT) recently challenged Musk to support a wealth tax if he truly believes money will cease to matter by 2036, referencing earlier comments from the billionaire.

What the Numbers Show

The debate highlights a divergence between public policy proposals and private sector technological forecasts. While Mamdani’s plan relies on traditional retail margins—cited by Calacanis as 1-2%—Musk’s argument rests on the assumption of zero-marginal-cost production through automation. No financial data supports the immediate viability of either model, but the conflict underscores growing tension between municipal welfare strategies and tech-led utopianism.

Prominent investor Gary Black has warned investors not to "fall in love" with Tesla Inc. stock, criticizing what he described as a "cult" mentality among bulls who attack those questioning the company's valuation or performance. In a series of posts on X on August 2, 2026, Black argued that the debate around the electric vehicle maker has become polarized, with supporters resorting to personal attacks against posters offering thoughtful contrarian views. He emphasized that investment theses must evolve as companies mature, noting that his own view on Tesla shifted after it achieved profitability and joined the S&P 500.

Black highlighted that investors who bought Tesla over the past five years have underperformed a basket of random Nasdaq-100 (NDX) names. He rejected comparisons spanning 10 to 15 years, stating that the investment thesis was fundamentally different before Tesla achieved key milestones such as profitability and the Model Y becoming a major seller. While Tesla was his largest position from 2019 through 2023, Black now values the stock at $312, a figure he reiterated recently. He cautioned that the current market enthusiasm does not reflect underlying fundamentals, particularly regarding the company's autonomous driving ambitions.

Full Self-Driving (FSD) technology remains central to Tesla's current investment thesis, yet skepticism persists among analysts and investors. Black previously characterized Tesla's Cybercab expansion plans as "just for show" until the company achieves true autonomy, arguing that strong vehicle sales do not indicate a newfound infatuation with FSD capabilities. Tesla reported record net new FSD subscriptions in the second quarter, with more than 55% of North American deliveries including subscriptions. Global subscriptions approached 1.5 million, though the product remains labeled FSD (Supervised) and requires driver attention.

Wall Street analysts remain divided on Tesla's execution pace and valuation metrics. JPMorgan upgraded Tesla to neutral in June, suggesting that autonomy and robotics could reshape earnings while warning of execution risks. Morgan Stanley analysts subsequently stated that investors require evidence that Tesla's spending is strengthening its "physical AI moat." Meanwhile, Wells Fargo analyst Colin Langan questioned why Tesla's robotaxi fleet remained "in the dozens as opposed to hundreds," highlighting concerns about deployment speed. Forrester analyst Paul Miller noted that Tesla's unsupervised mileage remains far below that of Alphabet-backed Waymo.

Further scrutiny emerged regarding Tesla's safety claims. Reuters identified flaws in Tesla's FSD safety comparisons after consulting researchers and former employees, though Tesla did not answer detailed questions on the matter. Despite these concerns, Tesla shares were up 0.79% to $313.66 during pre-market trading on Monday. Benzinga Edge Rankings show Tesla scoring poorly on Momentum and Value metrics but providing satisfactory Growth and Quality scores.

What the Numbers Show

The divergence between Tesla's subscription growth and its autonomous fleet deployment highlights a tension in the current investment narrative. While global FSD subscriptions approached 1.5 million, indicating strong consumer interest in the software feature, the actual unsupervised mileage remains significantly lower than competitors like Waymo. This gap suggests that while revenue from FSD subscriptions is growing, the core promise of autonomous driving — which drives much of the long-term valuation multiple — faces execution hurdles. Investors relying solely on subscription numbers may overlook the slower pace of real-world autonomous deployment, which analysts like Colin Langan have flagged as a critical metric for validating the robotaxi thesis.