By Globalfinserve Business Desk
March 27, 2025
Tesla Inc. (TSLA) is facing mounting pressure from investors as CEO Elon Musk’s dual role leading the White House Department of Government Efficiency (DOGE) task force and running the electric vehicle (EV) giant raises concerns about his focus. With Tesla’s stock struggling and operational challenges mounting, analysts argue that Musk must recommit to Tesla and outline a clear roadmap for future growth, including the highly anticipated low-cost EVs and Full Self-Driving (FSD) Robotaxi rollout.
Wedbush Securities analyst Dan Ives has called for Musk to clarify his commitment to Tesla, stating that “actions speak louder than words.” The first-quarter earnings call in early May is expected to be a pivotal moment for Musk to reassure investors and unveil concrete plans to revive Tesla’s flagging growth prospects.
✅ Key Takeaways from Tesla’s Current Situation
Elon Musk’s dual leadership role has raised investor concerns, while Tesla faces production issues, inventory challenges, and brand damage.
1. Elon Musk’s Dual Role: Tesla CEO and DOGE Leader
- White House DOGE Task Force:
- Musk was appointed to lead the DOGE task force in early 2025, aiming to improve US government efficiency.
- Since then, investors have grown increasingly frustrated, perceiving that Musk is spending “110% of his time with DOGE” rather than focusing on Tesla.
- Investor Pressure:
- Analysts, including Dan Ives, are urging Musk to reaffirm his focus on Tesla, stating that his public commitment is crucial to restoring investor confidence.
- “There is one person Tesla investors need to hear from … Musk,” Ives emphasized.
2. Model Y Refresh and Low-Cost EV Roadmap
- Lower-Priced EVs:
- Tesla has long promised a new lineup of affordable EVs, reportedly de-contented Model Y variants targeted at the Chinese and global markets.
- The lower-cost vehicles are slated for 2025 production, but Tesla has yet to unveil a clear roadmap, raising market skepticism.
- Model Y Refresh:
- Tesla is expected to refresh its Model Y later this year, aiming to boost demand amid rising competition from BYD, Rivian, and GM.
- Inventory Challenges: Tesla has been dealing with growing inventory levels as demand softens, adding urgency to its new product lineup.
3. Full Self-Driving (FSD) Robotaxi Rollout
- Robotaxi Launch in Austin, Texas:
- Tesla is planning to launch unsupervised FSD Robotaxi testing in Austin, Texas, by June 2025.
- This is a key milestone in Tesla’s long-term strategy, as autonomous driving technology is central to its bull case for future growth.
- California Testing Approval:
- This week, California regulators granted Tesla a permit for ride-hail testing with employees in piloted cars, marking a small but significant step toward full-fledged Robotaxi services.
- However, Tesla has yet to officially announce this development, raising questions about its communication strategy.
✅ Challenges Tesla Faces Amid Musk’s Divided Attention
Despite being a pioneer in the EV market, Tesla is grappling with multiple challenges that could hinder its growth and profitability.
1. Cybertruck Recall Crisis
- Recall of 46,000 EV Pickups:
- Tesla announced a recall of 46,000 Cybertrucks due to exterior panels detaching at high speeds.
- The recall has further damaged Tesla’s reputation, with quality concerns intensifying.
- Brand Impact:
- With Tesla’s brand already under fire, the recall could further erode consumer trust.
- Musk’s divided attention has exacerbated worries about Tesla’s operational management.
2. EV Demand and Inventory Issues
- Falling Demand:
- Tesla has been struggling with slowing EV demand in key markets, including China and the US.
- The lack of a low-cost EV lineup has limited its ability to compete with affordable rivals like BYD.
- Growing Inventory:
- Tesla’s rising inventory levels reflect weakening demand, putting pressure on margins.
- Musk’s leadership distraction has fueled concerns that Tesla is losing market share.
3. Tesla’s Stock Performance
- Stock Decline:
- Despite a slight 0.39% increase on Thursday, Tesla’s stock has been down over 12% YTD.
- Brand damage, recalls, and Musk’s divided focus have weighed on investor sentiment.
- Analyst Ratings:
- Dan Ives reiterated his Outperform rating on Tesla stock with a $550 price target, citing long-term growth potential.
- However, he warned that Musk needs to refocus on Tesla and address operational issues.
✅ Tesla’s Strategic Moves to Regain Investor Confidence
To revive confidence and boost growth, Tesla must execute several key strategies effectively.
1. Musk’s Recommitment to Tesla
- Public Statement Expected:
- Analysts expect Musk to make a public statement reaffirming his commitment to Tesla’s leadership.
- This could happen during Tesla’s Q1 earnings call in early May 2025.
- Investors’ Expectations:
- Musk must demonstrate that he is prioritizing Tesla’s growth, reassuring investors concerned about his DOGE obligations.
2. Low-Cost EV Roadmap
- Clear Production Timeline:
- Investors want Tesla to confirm the production timeline for its affordable EVs, which are seen as critical to long-term growth.
- The Chinese market will be the first to receive these lower-priced models.
- Pricing Strategy:
- To compete with BYD and other rivals, Tesla must offer competitive pricing without eroding margins.
3. FSD and Robotaxi Expansion
- Autonomous Driving as a Growth Catalyst:
- Tesla’s FSD and Robotaxi services are pivotal to its future revenue streams.
- The company must accelerate its rollout, starting with Austin’s Robotaxi trials in June.
- Regulatory Approvals:
- Tesla must secure regulatory approvals in multiple US states and international markets to scale its Robotaxi services.
✅ Financial and Market Implications
Tesla’s future growth and profitability hinge on Musk’s ability to refocus on the company and deliver on key product promises.
1. Revenue and Profitability
- EV Sales Growth:
- A successful low-cost EV launch could boost Tesla’s market share, particularly in emerging markets.
- The Model Y refresh is expected to improve sales in the US and Europe.
- Profit Margins:
- If Tesla addresses inventory challenges and streamlines production, it could protect its margins.
2. Stock Performance
- Short-Term Impact:
- If Musk publicly reaffirms his Tesla focus, the stock could rebound in the short term.
- Long-Term Outlook:
- A successful Robotaxi rollout and low-cost EV launch could fuel long-term stock gains.
✅ Key Takeaways for Investors
- Musk’s Divided Attention: Concerns over Musk’s DOGE role have weighed on Tesla’s stock.
- Low-Cost EV Roadmap: Investors demand a clear timeline for affordable EV production.
- FSD and Robotaxi Potential: Tesla’s autonomous driving services are crucial to its growth.
- Cybertruck Recall: The 46,000-vehicle recall adds to Tesla’s quality concerns.
- Investor Confidence: Musk’s Q1 earnings call in May will be critical to restoring investor confidence.
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