Tesla shifts focus to burgers as EV sales lag
Tesla Diner Opens in West Hollywood, Aiming for Global Expansion
Tesla, the electric vehicle (EV) manufacturer, is venturing into an unexpected industry: fast-casual food service. The company has opened a 24/7 diner in West Hollywood, California, as part of its strategy to diversify revenue streams and reinvigorate brand engagement. This new venture marks a bold step for a company that has faced declining sales and a challenging public image in recent years.
The Tesla Diner, located on a lot lined with 80 Tesla V4 superchargers beneath solar canopies, is described by CEO Elon Musk as "an island of good food, good vibes and entertainment." According to Musk, if this concept proves successful, Tesla plans to establish similar diners in major cities worldwide, as well as at Supercharger sites along long-distance routes.
The diner is open to all customers, regardless of whether they own a Tesla vehicle. It accepts charging for cars from other manufacturers whose ports are compatible with Tesla's charging cables. However, there is a catch: only electric vehicles are allowed to park in the diner’s lot. Gas-powered vehicles must use street parking or a nearby garage, according to the diner’s FAQ page.
Inside, the space offers seating for 250 people across two floors. The second floor, dubbed the “Skypad,” features an open-air design and two 66-foot LED screens that broadcast movies, content, and special features. These screens also stream directly to Tesla infotainment systems via the new Diner app, which allows users to order food. The app is designed to enhance the customer experience, offering convenience and integration with Tesla’s technology.
Entertainment options include an Optimus robot serving popcorn, as captured in press photographs. Additionally, the diner offers merchandise such as Optimus action figures, gummy candy, and other branded items. The menu features classic American diner fare with modern twists, including dishes like chili made with Wagyu beef and burgers topped with a unique “Electric Sauce.” All meals are served in Cybertruck-shaped boxes, adding a distinctive touch to the dining experience.
For vegetarians, the diner provides multiple options, though the selection is limited. Even the fried goods are cooked in beef tallow rather than vegetable oil, which may be a concern for some customers.
On the day of the opening, lines were reported to be extremely long, with customers arriving at 4:20 PM local time. While the timing may seem arbitrary, it highlights the level of interest in the new venture.
Tesla’s sales have been on a downward trend, influenced in part by Musk’s political activities and the fallout from his public disputes with former President Donald Trump. However, the decline began before Musk’s political shift, with sales slipping globally and in the U.S. where Tesla recently fell below 50% of the EV market share for the first time. Increased competition from both American and lower-cost Chinese manufacturers, combined with a stagnant product lineup and a polarizing CEO, contributed to the challenges.
Despite these hurdles, the Tesla Diner was not a last-minute idea. Musk had mentioned the concept as early as 2023, joking about it on social media. In August 2023, he posted, “Our Tesla futuristic diner (Grease meets The Jetsons with Supercharging) in LA should be ready later this year.” While the project took longer than expected, it has now become a reality, albeit with a few delays. For now, the closest thing to an actual Optimus robot is a toy version available for purchase at the diner, which could be considered a small victory for fans.
This new venture reflects Tesla’s willingness to explore unconventional business models and push the boundaries of what a car company can become. Whether the Tesla Diner will succeed remains to be seen, but it is certainly a bold move in an ever-evolving market.