Core Viewpoint - The "Magnificent Seven" stocks, including Tesla, are trading at their lowest valuation premium since 2017, with Tesla's stock down 50% from its peak, raising concerns about its market position and future growth potential [1][10]. Group 1: Market Position and Competition - Tesla's market share in battery-electric vehicle (BEV) sales has declined from 19% in 2023 to 17% in 2024, with a further drop to 12% year-to-date through February 2025, as competition intensifies, particularly from BYD [3][4]. - In Q1 2025, Tesla deliveries reached their lowest level since Q2 2022, indicating deteriorating demand [4][10]. Group 2: Political Influence and Brand Impact - Elon Musk's political involvement has raised concerns, with advertisements targeting him potentially affecting consumer perception and brand loyalty [5][6]. - The political scrutiny surrounding Musk may dissuade some consumers from supporting Tesla, as he has taken on additional responsibilities that could distract him from the company [6]. Group 3: Future Opportunities - Analysts like Dan Ives project that Tesla could become a 770 billion [2]. - Tesla has significant opportunities in physical artificial intelligence, with autonomous driving technology alone estimated to be a 209 billion by 2035 and 17 billion to Tesla's bottom line by 2035, suggesting that the stock may be undervalued if future earnings accelerate [12]. - The company must quickly scale its robotaxi business to compete effectively, as rivals like Waymo have already established a presence in the autonomous ride-sharing market [13].
1 AI Robotics Stock to Buy Before It Soars 160% to $2 Trillion, According to a Certain Wall Street Analyst