Houston park opens new facility amid major transformation project

next step

The new facility was first announced in 2019 as a part of the park's master plan redevelopment project, which includes the innovative Land Bridge that opened earlier this year. Photo via Memorial Park Conservatory

The latest project from a Houston park that's got an ongoing transformation project underway has revealed its latest new feature.

Memorial Park, Houston’s most popular destination for runners and one of the best trails in Texas, has unveiled its new, state-of-art running complex on November 4. The new facility was first announced in 2019 as a part of the park's master plan redevelopment project, which includes the innovative Land Bridge that opened earlier this year.

Encompassing years in planning and constructing, this new complex features the 400-meter Roy H. Cullen Timing Track, a viewing decks, an event plaza, several gathering spaces, trails, and more. More than a simple running track, the complex is designed to be a central gathering spot for all Memorial Park visitors, notes Memorial Park Conservancy executive director Shellye Arnold. The complex will also serve as new gateway to the park’s Bayou Wilds trails.

This new complex is meant to bring more park visitors to multiple areas of the park, Arnold notes, as well as improve track conditions for the thousands who use it, including Houston Astros and Texans players and Olympians. (Olympic legend Carl Lewis is a frequent user.)

“The old timing track in the park is just worn down and not really that accurate, and it has strange turns and corners,” Arnold tells CultureMap. “The running complex is very fitting for the park and for Houston.”

Credit goes to the game-changing Ten-Year Plan, which turned the Memorial Park Master Plan marathon into a sprint with an accelerated set of projects via catalyst gift from the Kinder Foundation and various donors. Partners include the Houston Parks and Recreation Department, Uptown Development Authority, and Kinder Foundation, and the City of Houston Mayor’s Office.

That mean a new experience not just for runners, joggers, and walkers, but all visitors.

“It’s a microcosm of the park, a place where a lot of people go and train at four or five in the morning,” adds Arnold. “But it’s a gathering place in the woods. If you think about Memorial Park, part of the whole experience is being immersed in nature. And so this particular timing track is really much more nature immersive than the old timing track.”

Community access is also a priority, for adults and kids.

“There are a lot of schools in Houston that don’t have access to a high quality track — or a track at all,” Arnold says. “And so now, their runners can come out and use the track. It won’t be used for meets, because we won’t close it off to the public very often at all. But it’s all about accessibility. Any school in Houston that wants to use it will be able to bring their students out and enjoy it.”

So while running may be the draw, really, it’s the complex is yet another chance to enjoy Memorial Park’s 1,500 acres and 25 miles worth of trails.

“There are places to hang out,” says Arnold. “There will be a cafe that will open up nearby in the first half of 2024 and an event plaza that’s also opening that will be a place to gather or just hang out with a group. Those are some of the many of the reasons that we did this. All the things that we do is to build community and foster a sense of connectedness — and this track will do that.”

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This article originally ran on CultureMap.

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Work has begun on a crucial part of the Land Bridge. Rendering courtesy of Nelson Byrd Woltz

Houston park moves forward on innovative land bridge project

tunnel of sustainability

Few things get local greenspace lovers more hyped than the upcoming improvements and beautification of our beloved Memorial Park — which is currently undergoing a major transformation. While many of the updates and facelifts are years off, one of the most innovative ventures has reached a new milestone in the much-anticipated Land Bridge and Prairie project.

Installation of the first tunnel arches has started as of December 9, according to the Memorial Park Conservancy. Marked by two separate, 35-foot tall mounds, the Land Bridge will serve as a major connector for park users and wildlife between the north and south sides of the park, Additionally, it will offer new gathering spaces with scenic views of Houston and the project's expansive prairie network.

Once the project is completed, vehicular traffic will traverse a new alignment of Memorial Drive via tunnels through the Land Bridge — two tunnels below each of the mounds (one for each direction of travel), according to a press release. The arch segments now being erected south of existing Memorial Drive are for the two tunnels through the eastern-most mound.

Next up will be erection of the west mound arches; all tunnels are slated for completion and open to traffic by fall of 2021.

These tunnels boast an innovative edge. While most are built through existing hillsides or below ground, the Land Bridge tunnels will be set at the same grade as the existing roadway, prior to installation of the earthwork for the mounds, per a release. The tunnels through the east and west mound measure 400 feet and 560 feet long respectively and are made up of some 620 separate panels, each of which weighs just under 50,000 pounds.

While excitement is looming, traffic on Memorial Drive is no doubt a concern. Sources at Memorial Park Conservancy assure that Memorial will remain open throughout the duration of Land Bridge and Prairie construction. Within the project area, traffic has been reduced from three lanes to two each way.

All lanes will reopen in fall 2021 once the new Memorial Drive alignment through tunnels is complete. The new road alignment with three lanes restored each way will be complete in September 2021, while the Land Bridge is slated for substantial completion by October 2022.

Meanwhile, trees removed from the Land Bridge and Prairie project area (a major concern for locals) will be relocated in areas of the park designated for reforestation, or repurposed as either compost or toewood for streambank stabilization, in keeping with the Master Plan provisions.

The new arches are being installed on Memorial Drive. Photo courtesy of Memorial Park Conservancy

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This article originally ran on CultureMap.

The new Land Bridge will create safe passage from humans and animals. Rendering courtesy of Nelson Byrd Woltz

Houston park breaks ground on innovative land bridge

now building

Last week, Memorial Park made headlines when it triumphantly opened its lush and verdant Eastern Glades. The 100-acre destination transformed largely inaccessible green space into a destination offering up picnic areas, native wetlands, a savanna, a pine-hardwood forest, green spaces, and miles of accessible trails.

Now, the Memorial Park Conservancy has announced that construction has begun on Memorial Park's Land Bridge and Prairie project. The 100-acre project, slated for completion in late 2022, will create a new community space with enhanced recreation opportunities for park users with "unmatched vantage points of urban skyline views," according to a press release. Memorial Park's prairie, which adjoins the Land Bridge to the north and the south, aims to re-establish endangered native Gulf Coast prairie, savanna, and wetlands.

The Land Bridge and its corresponding prairie are part of the Memorial Park Master Plan, made possible by a $70 million gift from the Kinder Foundation, and associated the Ten-Year Plan.

Commuters, no need to worry: Memorial Drive will remain open throughout the duration of Land Bridge and Prairie construction. Traffic will be reduced from three lanes to two each way beginning September, while a new section of Memorial Drive and the tunnel arch structures for the Land Bridge are completed directly south of the operating lanes.
All lanes will reopen in fall 2021 once the new Memorial Drive alignment through tunnels is complete, according to a release.

The Land Bridge Photo courtesy of MPC

Additionally, per the conservancy, the Land Bridge will:


Provide safety and connectivity
This will benefit both humans and animals crossing Memorial Drive. The Land Bridge will establish two dynamic greenspace connections over Memorial Drive that reunite the north and south sides of the Park while expanding the existing trail network and providing increased connectivity within the Park. While the Land Bridge will provide connectivity for Park visitors and wildlife over Memorial Drive, a stream corridor constructed through the Prairie and a culvert will provide connectivity under Memorial Drive. Together these elements will provide much-needed wildlife connectivity within Houston's largest urban wilderness park and to the natural Buffalo Bayou corridor.

Restore nearly 45 acres of native coastal prairie
This will establish a more resilient ecology during natural disruptions and improve animal habitats. Native coastal prairie is one of the most endangered ecosystems in North America, with less than 1 percent of its historic range remaining today. These forthcoming ecosystems will be home to numerous species of flora and fauna.

Create a new destination for visitors
New opportunities include nature education, leisure walking, interval running and cycling, stargazing, relaxing, and more.

Improve stormwater management
The project will detain stormwater that flows through Memorial Park to Buffalo Bayou during heavy rain events, lessening the impact of peak storms. A stream channel constructed through the site, along with the network of native prairie and savanna, will support greater regional biodiversity and act as a green sponge, helping to absorb and clean stormwater. The constructed wetlands will help to purify water and reduce roadway pollutants that would otherwise be released into the watershed.

"From aiding with critical stormwater management to granting people and wildlife safer crossing over Memorial Drive to providing a dynamic outdoor destination for all visitors, the Land Bridge and Prairie will be an asset not just for Memorial Park but for all Houstonians," said Mayor Sylvester Turner in a statement. "It's about unifying both sides of the Park and giving people a new landmark that they can be proud of and use to enjoy nature."

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This article originally ran on CultureMap.

Memorial Park Conservancy's renovations include some projects that are rare or never been done before. Photo courtesy of MPC

These were Houston's top impact innovation stories this year

2019 IN REVIEW

When it comes to the impact that innovation has had on Houston, a number of things stand out for 2019. And, so many of these top stories from this past year are just beginning.

InnovationMap's most read articles in its impact category include new technologies for flood resiliency, The Ion's development, Memorial Park renovations, and more.

These Houston entrepreneurs and startups are searching for flooding solutions

From a water-absorbing tower to sensor-enabled rubber ducks, here are some flooding solution ideas coming out of Houston. Courtesy of Gensler's ByDesign

The feeling is all too familiar for Houstonians. Tropical Storm Imelda hit Houston with devastating flood waters just two years after Hurricane Harvey did its damage.

With any obstacle or challenge, there is room for innovation. Over the past year, InnovationMap has covered various flood tech startups in Houston. Here are six innovations that can make a difference the next time a storm decides to take its toll on Houston. Continue reading.

Memorial Park Conservancy plans to deliver its first project of its master plan redevelopment next year

Memorial Park Conservancy is gearing up to unveil one if its first projects within its 10-year master plan redevelopment. Photo courtesy of MPC

Memorial Park Conservancy has until 2028 to deliver on its master plan redevelopment project, but if MPC president and CEO Shellye Arnold has anything to say about it, the plan will be completed way ahead of that.

The project is a collaborative effort between MPC, Uptown Houston TIRZ, and Houston Parks and Recreation Department to redevelop the 1,500-acre park. In 2011, a major drought decimated the park and areas saw losses of 50 to even 90 percent of the canopy of trees.

"As tragic as it was, it made people take action," says Arnold.

Following the drought, these organizations looked to the people to see what was needed and wanted by the 3 million visitors and residents of the 170 ZIP codes that frequent the park annually.

"There was a huge outcry to do something," Arnold says. "That something became an effort to define the future of the park in a way that would be powerful, bold, thoughtful, innovative, and very resilient. It would consider Houstonians of the future and Houstonians today. It would consider soils, storm water treatment, the wildlife, and what people want." Continue reading.

Overheard: The Ion breaks ground in Midtown's former Sears building

The Rice Management Company has broken ground on the renovation of the historic Midtown Sears building, which will become The Ion. Natalie Harms/InnovationMap

The Ion — a to-be entrepreneurial hub for startups, universities, tech companies, and more — is, in a way, the lemonade created from the lemons dealt to the city by a snub from Amazon.

In 2018, Amazon narrowed its options for a second headquarters to 20 cities, and Houston didn't make the shortlist.

"That disappointment lead to a sense of urgency, commitment, and imagination and out of that has come something better than we ever could have imagined," David Leebron, president of Rice University, says to a crowd gathered for The Ion's groundbreaking on July 19.

However disappointing the snub from Amazon was, it was a wake-up call for so many of the Houston innovation ecosystem players. The Ion, which is being constructed within the bones of the historic Midtown Sears building, is a part of a new era for the city.

"Houston's on a new course to a new destination," says Mayor Sylvester Turner. Continue reading.

Third Ward community expresses concerns with The Ion project that's underway

The local community has raised some concerns about Rice Management Company's Ion project's effect on the Third Ward. Courtesy of Rice University

The city of Houston has been buzzing about Rice Management Company's Ion Innovation Hub — a 270,000-square-foot coworking and innovation hub project expected to deliver in 2021 — but there's one group isn't so thrilled with the plans: The Third Ward community.

In a public community meeting on November 12, community members gathered at the Wesley AME Church to plan a Community Benefits Agreement that would legally bind The Innovation District's development team and the Rice Management Company to move forward with the local residents' indicated best interests. According to the Houston Coalition for Equitable Development without Displacement, a newly formed group to work on the CBA, it would be the first of its kind in Houston.

The coalition is supported by Third Ward is Home Civic Club, the Emancipation Economic Development Council, the Texas Coalition of Black Democrats - Harris County, and the Houston Society for Change. Continue reading.

4 things you need to know from the Greater Houston Partnership's annual report as it pertains to innovation

downtown houston

The Greater Houston Partnership has the facts. Nick Bee/Pexels

Every year, the Greater Houston Partnership — the city's economic development arm — gathers up data and reports to paint a full picture of the Bayou City. In the past few editions, innovation has been a key component.

The GHP's innovation coverage spans three pages under the top industry and sectors category. From tech startup growth to money raised, here's what you need to know from the 2019 Houston Facts. Continue reading.

Amazon's AI-enabled Houston fulfillment center, Comcast's new digs, and startup accelerators are this week's top stories. Natalie Harms/InnovationMap

5 most popular innovation stories in Houston this week

What's trending

Editor's note: Innovation is everywhere — from inside a massive urban park to the robots sorting cat food. This week's top stories are as diverse as they come, but they all represent Houston tech and innovation.

How Amazon's Houston fulfillment center uses AI technology and robotics to move millions of products

From robotics to artificial intelligence, here's how Amazon gets its products to Houstonians in record time. Photo by Natalie Harms/InnovationMap

Last summer, Amazon opened the doors to its North Houston distribution center — one of the company's 50 centers worldwide that uses automation and robotics to fulfill online orders.

The Pinto Business Park facility has millions of products in inventory across four floors. Products that are 25 pounds or less (nothing heavier is stocked at this location) pass through 20 miles of conveyor belts, 1,500 employees, and hundreds of robots. Read the full story here.

3 ways the Memorial Park Conservancy renovations are innovative

Memorial Park Conservancy's renovations include some projects that are rare or never been done before. Photo courtesy of MPC

Memorial Park is undergoing a huge transformation that is mixing a little bit of old with the new.

The Memorial Park Master Plan includes adding breathtaking new projects — like water features, a new athletic complex, and more — as well as conservation efforts that restore parts of the land that were native coastal prairie. The project is a collaborative effort between Memorial Park Conservancy, Uptown Houston TIRZ, and Houston Parks and Recreation Department to redevelop the 1,500-acre park. Read the full story here.

Breaking down Houston's 4 new startup accelerator programs

Houston has seen four new accelerators enter the market this year. Photo by Zview/Getty Images

It's official — 2019 is the year of accelerators in Houston. Four different accelerator programs have announced plans to launch Houston programs this year so far — and they are all bringing something different to the table.

All four of the programs represent global programs or big companies recognizing the potential in Houston, which, according to Yael Hochberg, head of the Rice University Entrepreneurship Initiative, is a key part of the equation.

"When you're talking about a place like Houston, what we need here right now is interest from the outside," Hochberg says. "We need some certification by people from the outside that in fact this is a destination for innovation and entrepreneurship." Read the full story here.

3 Houston innovators to know this week

These three innovators are ones to look out for. Courtesy photos

From venture capital funding to nap research, these Houston innovators are leading the way in their industries. This week's innovators to know are a finance expert, LGBT leader and productivity expert, and a Houston expat making big moves in real estate. Read the full story here.

Comcast unveils its $16 million technology center in a growing suburb just outside of Houston

The new $16 million Comcast facility is another feather in the cap of Fort Bend County, which is booming with new business.Courtesy of Comcast

At Comcast's new $16 million technology center in Missouri City, technicians for the internet and cable TV provider can "test drive" new product and services at a demo lab and can take classes at Comcast University. It's a far cry from the stereotypical workplace of the "cable guy."

The center represents a cutting-edge expansion for Comcast — and represents yet another feather in the economic-growth cap of Missouri City and Fort Bend County.

On June 19, officials from Comcast, Missouri City government, and the Fort Bend Economic Development Council debuted the 32,000-square-foot center. The center is at 551 Buffalo Lakes Dr., near the intersection of Texas Freeway and Independence Boulevard. Aside from the demo lab and Comcast University classrooms, the center features more than 100 workstations and 15 conference rooms. Read the full story here.

Memorial Park Conservancy's renovations include some projects that are rare or never been done before. Photo courtesy of MPC

3 ways the Memorial Park Conservancy renovations are innovative

Park of the future

Memorial Park is undergoing a huge transformation that is mixing a little bit of old with the new.

The Memorial Park Master Plan includes adding breathtaking new projects — like water features, a new athletic complex, and more — as well as conservation efforts that restore parts of the land that were native coastal prairie. The project is a collaborative effort between Memorial Park Conservancy, Uptown Houston TIRZ, and Houston Parks and Recreation Department to redevelop the 1,500-acre park.

The Master Plan is set to deliver a series of projects ahead of 2028, and there are a few initiatives that are innovative and different from other urban parks' transformations, notes MPC's president and CEO Shellye Arnold.

The Land Bridge

Photo courtesy of MPC

A big part of Memorial Park's transformation is restoring the park to native species and ecosystems.

"We're taking ball fields, parking lots, and roads and converting them back to what was here — native wetland coastal prairie," Arnold says. "This serves important stormwater purposes."

In order to connect two native coastal prairie lands on either side of Memorial Drive, MPC is building a unique 30-foot-high land bridge the size of three-and-a-half football fields. The space will be large enough that you don't even realize you're standing over a busy street, Arnold says.

The prairies will serve an important purpose for rainwater collection — a growing need within the city of Houston.

"We're channeling [rainwater] into this prairie where some of it can be absorbed, cleansed, slowed down," says Arnold. "And then what doesn't get slowed down and absorbed can flow through the prairie [on the other side], which is even bigger."

The Land Bridge also serves another purpose that park goers have wanted, Arnold says: Connectivity.

"[They] want access across the Memorial Drive — [they] want to safe access, and so this is the response. It's a pretty bold and visionary response," Arnold says.

BioCycling

Photo courtesy of MPC

In 2011, a major drought decimated the park and areas saw losses of 50 to even 90 percent of the canopy of trees. MPC and its team saved what could be saved, and the rest is serving a new purpose to the park.

"We took the trees that we lost on the drought that people felt such a tremendous loss for and ground them all up, and they are in a biocycle in a two-acre area in the back of the park," Arnold says.

The soil created — some of which includes manure from the animals at the Houston Zoo — has already been used on some plants in the park, and Arnold says those plants are thriving.

"It's cool that those those trees are giving life to the park," Arnold says.

Invasive species of trees that are plucked from out of the park are also being ground up and used in the same way.

"There isn't anything this big like this in an urban park setting like this kind of recycling effort," she says.

The biocycling process is scalable too.

"We could open this up to other organizations," Arnold says. "It's so much better ecologically to take trees and grind them up and use it inside the space rather than haul them out to landfill way outside of town and dump them."

The benefit to the program is that MPC can retain some of the soil it produces for these other organizations and use it on site.

Biodiversity initiatives and research

Photo courtesy of MPC

When putting the plans in place, MPC and its partners called on 25 of the best ecologists, as well as 50 more park and other types of consultants specializing in everything from insects and wildlife to prairies and trees.

Just as the Land Bridge is creating new prairie space, other initiatives throughout the park will be focused on eliminating invasive species and bringing back the natural ecosystem of the park.

The Easter Glades project, which is set to deliver next year, will have a habitat for fish, and will not allow any fishing or boating. Carolyn White, conservation director at MPC, is working with the Texas Wildlife Association to bring in the right species of fish.

Arnold says that MPC works with other organizations in an innovative way to bring native plants into MPC, since the park has the space for these organizations to use to cultivate and propagate plants.

"They bring their native plants and they grow them with their volunteers, and they leave us a little bit here," Arnold says. "We could never buy enough native plants to go inside this park."

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Intuitive Machines forms partnership with Italian companies for lunar exploration services

to the moon

Houston-based space technology, infrastructure and services company Intuitive Machines has forged a partnership with two Italian companies to offer infrastructure, communication and navigation services for exploration of the moon.

Intuitive Machines’ agreement with the two companies, Leonardo and Telespazio, paves the way for collaboration on satellite services for NASA, a customer of Intuitive Machines, and the European Space Agency, a customer of Leonardo and Telespazio. Leonardo, an aerospace, defense and security company, is the majority owner of Telespazio, a provider of satellite technology and services.

“Resilient, secure, and scalable space infrastructure and space data networks are vital to customers who want to push farther on the lunar surface and beyond to Mars,” Steve Altemus, co-founder and CEO of Intuitive Machine, said in a news release.

Massimo Claudio Comparini, managing director of Leonardo’s space division, added that the partnership with Intuitive Machines is a big step toward enabling human and robotic missions from the U.S., Europe and other places “to access a robust communications network and high-precision navigation services while operating in the lunar environment.”

Intuitive Machines recently expanded its Houston Spaceport facilities to ramp up in-house production of satellites. The company’s first satellite will launch with its upcoming IM‑3 lunar mission.

Intuitive Machines says it ultimately wants to establish a “center of space excellence” at Houston Spaceport to support missions to the moon, Mars and the region between Earth and the moon.

Houston hospitals win $50M grant for ibogaine addiction treatment research

ibogaine funding

The Texas Health and Human Services Commission has awarded $50 million to UTHealth Houston in collaboration with The University of Texas Medical Branch at Galveston (UTMB Health) to co-lead a multicenter research trial to evaluate the effect of ibogaine, a powerful psychoactive compound, on patients suffering from addiction, traumatic brain injury and other behavioral health conditions.

The funding will establish a two-year initiative—known as Ibogaine Medicine for PTSD, Addiction, and Cognitive Trauma (IMPACT)—and a consortium of Texas health institutions focused on clinical trials and working toward potential FDA-approved treatments.

The consoritum will also include Texas Tech University, Texas Tech University Health Sciences Center El Paso, The University of Texas at Austin, The University of Texas Health Science Center at San Antonio, The University of Texas at Tyler, The University of Texas Rio Grande Valley, Texas A&M University, The University of North Texas Health Science Center, Baylor College of Medicine and JPS Health Network in Dallas.

Ibogaine is a plant-based, psychoactive substance derived from the iboga shrub. Research suggests that the substance could be used for potential treatment for patients with traumatic brain injuries, which is a leading cause of post-traumatic stress disorders. Ibogaine has also shown potential as a treatment for addiction and other neurological conditions.

UTHealth and partners will focus on ways that ibogaine can treat addiction and associated conditions. Meanwhile, UT Austin and Baylor College of Medicine will concentrate on using it to treat traumatic brain injury, especially in veterans, according to a news release from the institutions.

The consortium will also support drug developers and teaching hospitals to conduct FDA-approved clinical trials. The Texas Health and Human Services Commission will oversee the grant program.

“This landmark clinical trial reflects our unwavering commitment to advancing research that improves lives and delivers the highest standards of care,” Dr. Melina Kibbe, UTHealth Houston president and the Alkek-Williams Distinguished Chair, said in the news release. “By joining forces with outstanding partners across our state, we are building on Texas’ tradition of innovation to ensure patients struggling with addiction and behavioral health conditions have access to the best possible outcomes. Together, we are shaping discoveries that will serve Texans and set a model for the nation.”

The consortium was authorized by the passage of Senate Bill 2308. The bill provides $50 million in state-matching funds for an ibogaine clinical trial managed by a public university in partnership with a drug company and a hospital.

“This is the first major step towards the legislature’s goal of obtaining FDA approval through clinical trials of ibogaine — a potential breakthrough medication that has brought thousands of America’s war-fighters back from the darkest parts of depression, anxiety, PTSD, and chronic addiction,” Texas Rep. Cody Harris added in the release. “I am excited to walk alongside UTHealth Houston and UTMB as these stellar institutions lead the nation in a first-of-its-kind clinical trial in the U.S.”

Recently, the University of Houston also received a $2.6 million gift from the estate of Dr. William A. Gibson to support and expand its opioid addiction research, which includes the development of a fentanyl vaccine that could block the drug's ability to enter the brain. Read more here.

Tesla no longer world's biggest EV maker as sales fall for second year

Tesla Talk

Tesla lost its crown as the world’s bestselling electric vehicle maker as a customer revolt over Elon Musk’s right-wing politics, expiring U.S. tax breaks for buyers and stiff overseas competition pushed sales down for a second year in a row.

Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier.

Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.

It's a stunning reversal for a car company whose rise once seemed unstoppable as it overtook traditional automakers with far more resources and helped make Musk the world's richest man. The sales drop came despite President Donald Trump's marketing effort early last year when he called a press conference to praise Musk as a “patriot” in front of Teslas lined up on the White House driveway, then announced he would be buying one, bucking presidential precedent to not endorse private company products.

For the fourth quarter, Tesla sales totaled 418,227, falling short of even the much reduced 440,000 target that analysts recently polled by FactSet had expected. Sales were hit hard by the expiration of a $7,500 tax credit for electric vehicle purchases that was phased out by the Trump administration at the end of September.

Tesla stock fell 2.6% to $438.07 on Friday.

Even with multiple issues buffeting the company, investors are betting that Tesla CEO Musk can deliver on his ambitions to make Tesla a leader in robotaxi services and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Reflecting that optimism, the stock finished 2025 with a gain of approximately 11%.

The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $40,000 while customers can buy the cheaper Model 3 for under $37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.

For fourth-quarter earnings coming out in late January, analysts are expecting the company to post a 3% drop in sales and a nearly 40% drop in earnings per share, according to FactSet. Analysts expect the downward trend in sales and profits to eventually reverse itself as 2026 rolls along.

Musk said earlier last year that a “major rebound” in sales was underway, but investors were unruffled when that didn't pan out, choosing instead to focus on Musk's pivot to different parts of business. He has has been saying the future of the company lies with its driverless robotaxis service, its energy storage business and building robots for the home and factory — and much less with car sales.

Tesla started rolling out its robotaxi service in Austin in June, first with safety monitors in the cars to take over in case of trouble, then testing without them. The company hopes to roll out the service in several cities this year.

To do that successfully, it needs to take on rival Waymo, which has been operating autonomous taxis for years and has far more customers. It also will also have to contend with regulatory challenges. The company is under several federal safety investigations and other probes. In California, Tesla is at risk of temporarily losing its license to sell cars in the state after a judge there ruled it had misled customers about their safety.

“Regulatory is going to be a big issue,” said Wedbush Securities analyst Dan Ives, a well-known bull on the stock. “We're dealing with people's lives.”

Still, Ives said he expects Tesla's autonomous offerings will soon overcome any setbacks.

Musk has said he hopes software updates to his cars will enable hundreds of thousands of Tesla vehicles to operate autonomously with zero human intervention by the end of this year. The company is also planning to begin production of its AI-powered Cybercab with no steering wheel or pedals in 2026.

To keep Musk focused on the company, Tesla’s directors awarded Musk a potentially enormous new pay package that shareholders backed at the annual meeting in November.

Musk scored another huge windfall two weeks ago when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018.

Musk could become the world's first trillionaire later this year when he sells shares of his rocket company SpaceX to the public for the first time in what analysts expect would be a blockbuster initial public offering.

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