Tesla(US:TSLA) Benzinga·2025-11-12 10:23Core Viewpoint - Gary Black, Managing Director of Future Fund LLC, expresses skepticism regarding Tesla's focus on autonomy and robots, highlighting concerns over the company's declining sales and high valuation in a competitive market [2][3][4]. Sales Performance - Tesla's sales in China fell to 26,006 units in October, representing a 35.8% year-over-year decline, marking the weakest monthly performance in three years [6]. - The company's market share in China dropped to 3.2% from 8.7% in September, the lowest level since 2020 [6]. - In nine key European countries, Tesla registrations also decreased by 36.3% year-over-year in October [7]. Valuation Concerns - Black argues that over 70% of Tesla's profits are derived from electric vehicles, questioning the justification for the company's forward P/E ratio of over 200x in a market characterized as a commodity business [2][3]. - Needham analyst Chris Pierce supports this view, indicating that half of Tesla's projected gross profit for 2030-2035 relies on unproven ventures like ridesharing and robotics, which limits valuation support at current levels [4]. Strategic Focus - Ross Gerber, co-founder of Gerber Kawasaki, warns that diverting focus from the core electric vehicle business, which he believes is still highly profitable, would be a strategic mistake for Tesla [5]. Stock Performance - Year-to-date, Tesla's stock has increased by 15.91%, but it fell by 1.26% to close at $439.62 on a recent Tuesday [8].