Tesla diner nears completion – but will it pull the crowds?
Tesla has shared images of its nearly completed Space Age diner and drive-in in Los Angeles. However, the project may suffer from the backlash against its billionaire owner, Elon Musk.
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Tesla has shared images of its nearly completed Space Age diner and drive-in in Los Angeles. However, the project may suffer from the backlash against its billionaire owner, Elon Musk.
A photo shared by Tesla on X, the social media platform also owned by Musk, shows a flying saucer-shaped building that nods to the retro-futuristic Googie architecture popular in mid-20th century California.
Located on Santa Monica Boulevard, the site features dozens of Supercharger stalls and two drive-in movie screens. The diner spans two floors, includes a bar, and offers rooftop seating.
Musk previously suggested that employees would serve customers on roller skates and described the diner as “Grease meets The Jetsons with Supercharging” in a post on X in 2023.
Musk has also floated the idea of expanding into the hospitality business with a “Tesla Hotel.”
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undefined Tesla (@Tesla) April 22, 2025
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However, such plans may be on hold as the company works to recover from a significant reputational hit linked to Musk’s political activities, including his prominent role in the Trump administration as its “efficiency czar” and support for far-right parties.
In a Tuesday (April 22nd) investor call, Musk said he would begin stepping back from his role at the Department of Government Efficiency, or DOGE, in May.
He said his time at DOGE would “drop significantly” and be limited to “critical work,” adding that this would also depend on whether President Donald Trump wanted him to continue and “as long as it is useful.”
Musk’s remarks came after Tesla’s disappointing quarterly results that showed a 9% drop in revenue year over year in the first three months of 2025, bringing in $19.3 billion in revenue, below expectations of $21.45 billion.
Tesla profits also dropped 71% to $409 million compared with $1.39 billion a year before and the company also delivered 13% fewer vehicles in what was the worst quarter since 2022.
Sales have fallen particularly sharply in California, which could affect customer traffic at Tesla’s upcoming diner. It may also have to consider the risk of protests and vandalism if backlash against the company continues.
Since Tesla obtained a permit for its Los Angeles diner in 2018, the company has relocated its headquarters from California to Texas, and public sentiment toward the automaker has markedly declined in the Golden State.
California remains Tesla’s largest US market, accounting for nearly a third of its domestic sales, according to Reuters.
However, while overall electric vehicle sales in the state rose by 7.3% in the first quarter of 2025, Tesla registrations dropped 15%, and the company has lost its majority market share.