Electric car empire shaken, Tesla faces identity crisis

Tesla's electric vehicle (EV) business is in sharp decline amid increased competition and a growing backlash against Mr Musk's political views.

According to experts, Tesla is currently in a transitional period, and this is a very pivotal time for this electric car manufacturing company.

Tesla recently reported a much weaker second-quarter profit than the same period last year. During the earnings call, Tesla CEO Elon Musk warned of headwinds and said ride-hailing and autonomous features would be the company's main focus moving forward.

Tesla’s electric vehicle (EV) business is in sharp decline amid increased competition and a growing backlash against Mr Musk’s political views, and the expiration of the $7,500 federal electric vehicle credit has added to the woes.

Speaking on Yahoo Finance's Opening Bid, Gradient Investments' Lisa Schreiber said that when it comes to valuation, investors don't know exactly how to value Tesla.

She explained that Tesla is no longer just an electric car company, but it has not really become a robotaxi and robotics company, which has caused confusion for investors.

Indeed, the way the market values Tesla illustrates this confusion. Tesla’s stock is trading like a rising tech star, not an automaker.

Tesla's forward P/E (price to expected earnings) ratio is 161 times, a figure that far exceeds even fast-growing tech giants like Nvidia (around 55 times), and is completely different from a pure-play automaker like Ford (just 9.6 times).

Meanwhile, some see Tesla as a company struggling to figure out its future direction. While its innovations in autonomous driving technology are noteworthy, the long wait is testing the patience of even the most calm investors.

Schreiber noted that caution is needed, especially with Tesla, as Mr. Musk has frequently made big promises but lagged in delivering products.

Take the robotaxi service, which launched in June in Austin, Texas, but is still six years behind Google rival Waymo, according to analysts at William Blair. During the earnings call, Mr. Musk also talked about humanoid robots, AI, and integrating them into the company’s fleet.

If Mr. Musk and his associates can deliver on their promises, investors like Schreiber will probably be among the first to back them. But for now, they’re choosing to wait and see.

This expert believes that caution is needed at this point. This expert said that in order to decide to buy, they need to see tangible results, witness the promise become reality first.

During a recent earnings call, Musk announced that Tesla is in the process of seeking regulatory approval to launch its robotaxi service in multiple states, including California, Nevada, Arizona and Florida.

He hopes to reach 50% of the US population by the end of this year and be fully operational by the end of 2026. So far, however, the company operates only a small fleet in Austin, Texas, and has not opened its doors to the public. Obtaining permits, especially in California, may be a much bigger hurdle than Musk expects.

Shawn Campbell, an adviser at Camelthorn Investments and a Tesla shareholder, said Tesla cannot afford to make mistakes with its robotaxi service. The company’s auto business is also struggling with falling sales in most markets.

Tesla’s sales fell 13% in the first half of 2025, as its core electric vehicle business suffered from an aging product line and brand damage from Mr. Musk’s political activities.

With no new low-cost models due until the final quarter of the year and the possibility of the $7,500 tax credit for electric car buyers in the US disappearing, Musk himself admitted that the company could face “a couple of tough quarters.”

On July 23, Tesla announced that it had produced the first versions of its low-cost car, a move that is believed to be aimed at stopping the severe sales decline that the company is facing in global markets.

Tesla is expected to mass produce the low-cost model in the second half of this year, raising hopes that it will revive demand in the face of growing competition from cheaper electric vehicles, especially in China, as well as a backlash against Mr. Musk’s political views./.

(Vietnam+)

Source: https://www.vietnamplus.vn/de-che-xe-dien-lung-lay-tesla-doi-mat-voi-khung-hoang-nhan-dien-post1052272.vnp