What does the future hold for the Republican Party?

After an extremely well-funded, vigorously fought campaign, the Republican Party, and their candidate, Mitt Romney, lost the Presidential election, as well as many other “down-ticket” offices in many states. Is the Republican Party out of touch with the mainstream of the US? Have they been co-opted by the Tea Party, or ultra-right extremists? Or has the leadership of the party, the Old White Guys, just failed to notice that they no longer look like the general demograph of the US? Or maybe a combination? Or am I totally of-base with this?