Elon Musk’s Tesla stocks have seen a significant decline this year, attributed to the unfinished projects that Musk has taken on, according to investor Ross Gerber. As the car company faces increasing competition, including challenges from other automakers like BYD in China, Tesla has resorted to issuing price cuts to increase demand. This has led investors to reevaluate Tesla primarily as a car company rather than a software company, as the focus on the competition has diverted attention from other essential projects.
With a focus on completing the full self-driving technology and Musk’s demand for more control over the company, Tesla’s valuation has shifted to a more reasonable level. Musk’s behavior and the lack of progress on key projects have contributed to this reevaluation. The risks posed by Musk’s leadership have been acknowledged by other Tesla investors, some of whom have called for more oversight of his actions.
Despite these challenges, Tesla’s stock continues to face downward pressure, dropping nearly 3% on Tuesday to around $183.15 per share. This decline, totaling 24% from the beginning of the year, has raised concerns among investors about Tesla’s performance compared to other mega-cap tech stocks. The company’s response to these challenges and its ability to navigate the competitive landscape will likely influence its future valuation and trajectory.