2 Reasons to Distance Yourself From Tesla in 2025, According to Warren Buffet Logic

Core Viewpoint - Tesla is facing significant challenges, including declining sales and competition, while its CEO's reputation and focus are raising concerns about the company's future performance [1][11]. Group 1: CEO Reputation and Focus - Tesla's CEO, Elon Musk, has developed a reputation that intertwines with partisan politics, which may have negatively impacted sales [3][4]. - A study suggests that Tesla could have sold 67-83% more vehicles between October 2022 and April 2025 if Musk had avoided political polarization [4]. - The company's board has taken measures to ensure Musk's focus on Tesla, including a substantial pay package approved by shareholders [6]. Group 2: Competitive Advantage - Tesla lacks a durable competitive advantage, which is critical for long-term investment success [7]. - While global EV sales are increasing, Tesla's market share in the U.S. has significantly declined from 80% to 38% by August 2025, indicating increased competition [8][9]. - Tesla is the only major global EV manufacturer experiencing a negative growth rate in deliveries, with a decline of 11% from January to August 2025 [9]. Group 3: Market Performance - Despite a peak in vehicle deliveries of approximately 1.8 million in Q3 2023, Tesla's sales have stagnated, even after a 20% price reduction [4][10]. - The overall EV market is growing, with global sales rising from over 13 million to 17 million between 2023 and 2024, highlighting Tesla's struggle to maintain its market position [8].