The Individual Leading Stellantis Believes Tesla May Not Be Around In A Decade | Carscoops

The Individual Leading Stellantis Believes Tesla May Not Be Around In A Decade | Carscoops

      The seasoned automotive executive does not believe Elon Musk will meet the goals required to receive his $1 trillion compensation package.

      Carlos Tavares suggests Musk might steer Tesla towards humanoid robotics.

      Tesla's sales have decreased for two consecutive years and may not bounce back soon.

      The ex-CEO of Stellantis cautioned that Tesla might fall behind BYD’s operational efficiency.

      In the past two decades, Tesla has evolved from a small startup into one of the largest automotive manufacturers globally, effectively establishing the standard for modern electric vehicles.

      However, as new competitors from China, like BYD, emerge, and Elon Musk splits his focus among rockets, robots, and artificial intelligence, a former Stellantis leader has proposed that Tesla could ultimately exit the automotive sector.

      It's well-known that the anticipated growth in Tesla sales promised by Elon Musk has not materialized recently. Musk once claimed Tesla could expand so quickly that it would sell up to 20 million vehicles annually.

      Yet, sales peaked at 1.808 million in 2023, dropping to 1.789 million in 2024, with predictions for this year estimating sales to decline to around 1.6 million.

      Could Tesla Move Away from Automobiles?

      Given it's Musk, it's not surprising that the figures have not matched his optimistic forecasts. According to Carlos Tavares, Tesla's future might be more uncertain than it appears.

      “We can’t dismiss the possibility that he will choose to leave the automotive sector to concentrate on humanoid robots, SpaceX, or artificial intelligence,” Tavares remarked in a recent interview with Les Echos to promote his new memoir. “Elon Musk will exit the auto industry.”

      These statements from Tavares coincide with Tesla’s board members actively encouraging shareholders to support Musk’s unprecedented $1 trillion pay package ahead of a vote on November 6.

      To walk away with $1 trillion, Musk must guide Tesla towards achieving significant financial milestones, and Tavares doubts these will be attained.

      “Tesla’s stock market value decrease will be enormous because this valuation is simply astronomical,” he noted. “I’m uncertain if Tesla will still exist in ten years. They are an innovative group, but BYD’s efficiency will surpass them.”

      The idea of Tesla shifting its focus from manufacturing cars to humanoid robotics or other areas isn’t entirely far-fetched, although Tavares’s track record doesn't make him the most credible predictor. His own time at Stellantis ended abruptly last year due to increasing internal tensions.

      More recently, he indicated that Stellantis itself could face fragmentation due to cultural and strategic discrepancies among its Italian, French, and American divisions, a forecast that, at the very least, shows Tavares remains consistent in anticipating turmoil.

      Source: Les Echos, Bloomberg

The Individual Leading Stellantis Believes Tesla May Not Be Around In A Decade | Carscoops The Individual Leading Stellantis Believes Tesla May Not Be Around In A Decade | Carscoops The Individual Leading Stellantis Believes Tesla May Not Be Around In A Decade | Carscoops

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The Individual Leading Stellantis Believes Tesla May Not Be Around In A Decade | Carscoops

The experienced auto executive is also skeptical that Elon Musk will meet the goals required to obtain his $1 trillion compensation package.