Elon Musk said he will become Tesla CEO in just five years.
Billionaire Elon Musk is currently planning to spend “a lot less” on future political contributions.
Scripps News
Earlier this year, Tesla (NASDAQ: TSLA) The stock price was $428, but CEO Elon Musk spent more time in the Trump administration, which runs the Department of Government Efficiency (DOGE) with his automotive company, and Tesla stocks began to shake.
Although Musk has regained momentum since leaving Washington and turned his attention to Tesla, EV stocks are still down about 20% this year, with the per share price at $325 as of June 16th.
There may be investors who wonder if it’s a good time to buy a Tesla these days. A quick comparison of the pros and cons of a company, and why is it best to refrain from buying stocks now?
Pros: Robotics and AVS can be huge
Musk often sets high goals for his company. Tesla often can miss the deadline for launches, but it doesn’t deny its success in the electric car market when most people say it’s failing.
So when Musk says that Tesla’s future lies in robotics and self-driving cars, he should probably take him seriously. And there’s a lot of money to be made from both.
Analysts at Morgan Stanley believe the humanoid robot market will be worth $5 trillion by 2035. Musk believes Tesla will be able to gain 10% market share, with its goal of producing 5,000 Optimus Bots this year and 50,000 next year.
Does that miss that goal? probably. However, deadlines are not a point. This means that Tesla is steadily moving towards the future of robotics.
This leads you to self-driving cars (AVS). Tesla was scheduled to launch its Robotaxis service in Austin, Texas this month, but only delayed its release. It’s easy to dismiss this as a blunder on another Tesla deadline, but the whole picture is that Tesla wants to build its own self-driving car and allow Tesla owners to rent vehicles for AV services.
Tesla bets that its EV can capitalize on this massive $2 trillion (by 2030). Behind some of its competitors, namely Alphabet’s Waymo, it’s not a ridiculous idea that the big US EV companies can carve out their niches in a still-lower AV market.
Cons: Lower vehicle sales, unproven markets, lack of focus
Despite Tesla’s potential, serious concerns remain. First, Tesla is stumbling around its core business: selling electric vehicles. Auto revenue fell 20% in the first quarter of 2025, while net income fell to just $0.12 per share to 71%.
The most likely reason was the serious brand damage that took place when Musk acquired a position in Doge and matched with some ideas that didn’t work with existing and potential customers. It’s hard to predict whether Tesla can rebuild its brand or how long it will take. That’s clearly not good for sales or its stock price.
Furthermore, the discolored brand came as EV sales were stagnant in the US amid tariff concerns, rising prices and lack of EV charging infrastructure. Furthermore, the intensifying competition in EVs overseas lacks Tesla’s dominance in foreign electric vehicle sales. Competitors based in China byd It surpasses Tesla in multiple markets, particularly China.
If all of that isn’t enough, it’s a bit of a gamble that Tesla is betting its future on robotics and AVS. These are two primarily unproven markets, and even if Tesla succeeds in building the right technology, there is no guarantee that there will be a demand for humanoid bots or self-driving cars out there.
Verdict: Take the waiting approach
If you’re on the fence about purchasing a Tesla, I think it’s better to wait to see how the company’s self-driving car planning and robotics opportunities unfold. Additionally, the Tesla brand needs some polish and it needs to prove that Mask can focus on his company rather than politics.
Vehicle sales need to be rebound, net profits need to grow, Musk must show that he can focus on one thing before he feels comfortable buying Tesla stocks right now. That doesn’t mean that AV and robotics ambitions won’t succeed, but the company has a lot to prove at this point.
Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Chris Neger has no position in any of the stocks mentioned. Motley Fool has Alphabet and Tesla positions and is recommended. Motley Fool recommends Byd Company. Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
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