[4/2] Tesla's Sales Slump, the TikTok Sale Issue, and Roblox's Next Move—Three Focal Points Shaking the Tech Industry

The technology industry continues to evolve while constantly facing major turning points. Electric vehicle (EV) manufacturer Tesla has been forced to deal with sluggish sales growth, while TikTok is approaching the deadline for a regulation and divestiture request from the U.S. government, and the gaming platform Roblox is attracting attention with its new developments. In this article, we will explain these latest trends in an easy-to-understand manner and examine their backgrounds and future prospects.

1. Tesla's Sales Slump and Its Background

Tesla has led the global EV market, but it announced quarterly sales results of a 13% decrease compared to the previous quarter (336,000 units), falling short of the market forecast of approximately 390,000 units. This is considered the largest drop since 2022 and has raised concerns among investors.

1-1. Factors Behind the Decline in Sales Volume

• Changes in Production Systems
  Tesla is working on improvements to its flagship SUV, the Model Y, and temporary production adjustments due to switching production lines may have affected sales volume.

• Intensifying Competition
  Automakers in Europe and the U.S., as well as BYD in China, are strengthening their EV lineups. BYD, in particular, is increasing sales in China and is capturing market share in areas where Tesla once held an advantage.

• Political Risk
  It has also been pointed out that the purchasing motivation of some customers may be wavering due to the political statements and stance of Tesla CEO Elon Musk. Amidst complex relationships with the Chinese government and various countries' environmental regulations and policies, there are concerns about the impact on brand image and production bases.

1-2. Future Outlook

• Musk's Focus on AI and Autonomous Driving
  Musk has long spoken about the practical application of full self-driving and his vision for AI-powered robotaxis, and it is said that test drives will proceed soon. Some investors say they prioritize long-term, dramatic technological innovation through AI over fluctuations in production numbers.

• Uncertainty Regarding Political Direction
  According to some reports, rumors are circulating regarding the U.S. administration's moves and Musk's political position (such as whether Musk might soon step away from his current role), and how this will affect Tesla's management has become a focal point.

2. U.S.-China Trade Issues and Their Impact on the Tech Industry

U.S. trade policy has changed significantly since the era of former President Trump, centering on tariff hikes, and the Biden administration has largely inherited that path. The U.S.-China confrontation is prominent in the high-tech sector, particularly in supply chains for semiconductors and EV-related parts, forcing companies to restructure their production bases and supply chains.

2-1. Possibility of Additional Tariffs by the President

• Consideration of 'Reciprocal Tariffs' or 'Flat Tariffs'
  Multiple proposals are being discussed in reports, such as 'imposing tariffs at the same level as those imposed by foreign countries on U.S. products,' 'establishing two or three levels of taxation,' and 'imposing a flat 20% tariff on all imports.'

• Impact on Inflation
  If import costs for semiconductors, smartphones, and other goods soar, prices for IT products within the U.S. could rise, potentially passing the burden on to end consumers.

2-2. Restructuring of the Global Supply Chain

• Expansion of Investment Within the U.S.
  There has been a series of moves to strengthen production within the U.S., such as the construction of new manufacturing plants by TSMC and various semiconductor companies, and investments in the U.S. by automakers like Hyundai.

• Cooperation and Division with Allies
  While there are efforts to strengthen supply chains with 'friendly nations' such as the EU and Japan, there are moves to further restrict technology sharing with China, increasing the risk of international relations fluctuations for major tech companies.

3. TikTok Facing Stricter Regulations and the Sale Issue

TikTok, which boasts explosive popularity as a short-video social media platform, has been notified by the U.S. government to sell or face a ban due to national security concerns. It is said that 'if a sale of the U.S. business is not finalized by April 5th, a ban within the U.S. is possible,' and multiple companies and investors are exploring acquisition proposals.

3-1. Overview of Acquisition Proposals

• Oracle and Investment Fund Consortium
  Under the initiative known as "Project Texas," a plan for Oracle to manage TikTok's U.S. data and ensure security has been under consideration for some time, but it has faced difficulties due to issues surrounding the handling of algorithms (source code).

• Frank McCourt's (Project Liberty) Proposal
  McCourt, who has achieved success in real estate and other businesses, has presented a plan to acquire only the U.S. TikTok business without including the algorithm, at a scale of $2 billion. He has put forward innovative ideas such as "creating a mechanism where users become shareholders and earn profits."

• Other Major Candidates
  Some reports suggest that Amazon has emerged with a "last-ditch" acquisition proposal, indicating that major IT companies and investors are engaged in various negotiations right up to the wire.

3-2. The Core of the Sale Issue: Algorithms

• The Chinese Stance
  Chinese authorities appear negative about handing over the algorithms and source code that support TikTok's appeal to overseas entities, casting a shadow over the completion of a sale.

• U.S. Legal Requirements
  To protect TikTok user data and dispel concerns about propaganda and information manipulation, a system where China has absolutely no control over the algorithms is considered essential, creating a high hurdle for a final agreement.

4. Roblox CEO Interview: New Strategies and Challenges

"Roblox" has grown rapidly worldwide as a platform where users can create virtual worlds and enjoy collaborating and interacting with other participants. CEO David Baszucki discussed the latest trends and future direction in an interview with Bloomberg.

4-1. New Parental Controls and Safety

• Latest Initiatives
  Roblox has expanded parental control features on its platform. It continues to strengthen safety by visualizing which games children are accessing and restricting friend requests.

• Aiming to be the "Safest Place"
  Baszucki emphasized, "Since our founding in 2006, we have aimed to be the safest place on the internet." The company is also moving forward with developing and releasing systems that use AI technology to filter inappropriate audio and text.

4-2. The Future of Games and Platforms Brought by AI

• Creator Support and Advertising Revenue
  On Roblox, numerous creators produce games and items, earning income through the virtual currency "Robux" and future advertising revenue. Baszucki has set a vision that "in the future, 10% of the world's games will run on Roblox," and anticipates revenue growth through partnerships with companies like Google.

• AI Development and Content Creation
  Technology for generating, monitoring, and managing complex media such as audio, video, and 3D spaces using AI is advancing rapidly. Baszucki stated, "This will allow anyone to easily create 3D experiences," expressing his expectation that AI will further innovate user-participatory platforms.

While Tesla, which has led the electric vehicle market, struggles with sales volume, international trade conflicts are affecting every aspect, from tech company supply chains to user data protection. TikTok is in the final stages of sale negotiations to ensure its survival in the U.S., and Roblox is looking to further expand games and the metaverse through new safety measures and AI utilization.

At first glance, each topic may seem unrelated, but a common thread emerges: the "tug-of-war between the globalization of technology and regulation/safety."

• While Tesla struggles with competition in China and production adjustments, political risks cannot be ignored.

• The sale negotiations surrounding TikTok suggest a new framework for international information management and corporate acquisitions.

• For Roblox to continue its expansion, the protection of minors and the safe use of AI are essential prerequisites.

Moving forward, companies must strive to survive by simultaneously playing 'offense and defense' in both innovative technology and regulatory compliance. While the tech industry continues to see remarkable development, uncertainty is also rising due to geopolitical risks and accelerating global competition. We must keep a close watch on these trends while tackling the challenge of how to foster new innovation in a safe and fair manner.

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