Analyst Points to Potential ‘Game Changer’ for Tesla (TSLA)

Tim Higgins, Wall Street Journal business columnist, recently talked to CNBC about the capabilities of Tesla (TSLA) CEO Elon Musk and how he can turn around the company with increased focus.

“One of his powers is that he inspires a lot of people to think about the future that is possible, that sci-fi excitement, whether it’s traveling to Mars or fixing real human issues such as being paralyzed with Neuralink. So these are very exciting things, and he is spending his time trying to do it. And when you get back to Tesla and what he is doing now, really, this interview was so interesting—it was almost talking about a reset, if he’s putting the on/off button on the Tesla experience for the year. Because he’s telegraphing to the investor that he’s back, there’s a huge challenge ahead that could change the conversation about the company, and that is the rollout of the driverless cars, of robotaxis. This is a gamechanger potentially for Tesla if he can execute, if he can pull it off.”

Investors are awaiting the Tesla robotaxi launch later in June. While the event can generate buzz, it is unlikely to resolve the company’s key issues in the short term.

Tesla’s EV sales are falling all over the world as the company faces challenges from competitors. Even if Elon Musk increases his focus to fix the company’s problems, it would take a lot of effort to come out of the demand crisis. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years.

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Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:

“The underweight in Tesla, Inc. (NASDAQ:TSLA) contributed to performance in the first quarter of 2025. Tesla’s automobile sales declined in the quarter, in part due to factory changeovers that were required for updates to the company’s best-selling vehicle, the Model Y. This resulted in slower sales volume in the quarter. Competition from China’s BYD is causing market share losses for Tesla in several non-U.S. markets. The CEO’s position as an advisor to President Trump has damaged Tesla’s brand image among a cohort of traditional electric vehicle buyers.”

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Disclosure: None. This article is originally published at Insider Monkey.