Elon Musk-led Tesla Inc. (NASDAQ:TSLA) could face steep challenges in the coming decade, with the company’s long-term survival uncertain, according to former Stellantis (NYSE:STLA) CEO Carlos Tavares.
Tesla’s Future Uncertain Amid Rising Competition
On Friday, Tavares told French newspaper Les Echos that Tesla is under increasing pressure from Chinese EV giant BYD Co. Ltd.’s (OTC:BYDDY) (OTC:BYDDF), which surpassed Tesla in global electric vehicle sales earlier this year, reported Fortune.
«We can’t rule out that at some point, he’ll decide to leave the automotive industry to refocus on humanoid robots, SpaceX, or artificial intelligence,» said Tavares, who stepped down from leading Stellantis last year. «Elon Musk will have left the automotive industry.»
Tavares noted BYD’s efficiency and cost-effective vehicles as key factors pressuring Tesla.
«Tesla’s stock market value loss will be colossal because this valuation is simply stratospheric,» he said. «I’m not sure that Tesla will still exist in 10 years. It’s an innovative group, but they’ll be beaten by BYD’s efficiency.»
Tesla Posts Strong Revenue Despite Market Pressures
Tesla exceeded Wall Street expectations in its third-quarter earnings, reporting $28.095 billion in revenue, up 12% year-over-year and a 33% increase in deliveries in China, its second-largest market.
Still, Tesla’s market share in China has declined to roughly 5% from 16% in 2020, reflecting intensifying competition.
Last year, Musk also admitted that «Chinese car companies are the most competitive car companies in the world.»
Musk’s Focus Split Across Ventures
Tavares highlighted that Musk’s attention is divided across multiple ventures, including SpaceX and AI projects.
Tesla has proposed a 10-year, $1 trillion pay package to retain Musk, with targets including a 500% increase in market capitalization to $8.5 trillion.
Previously, Tesla board chair Robyn Denholm defended the plan, stating, «If you prefer that Tesla turn into just another car company mired in the ways of the past, then you should follow ISS and Glass Lewis.»
Benzinga’s Edge Stock Rankings show that TSLA maintains a strong price trend across short, medium and long-term periods. Additional performance details can be found here.
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