Listen to Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk for just a few minutes, and one recognizes an individual with some seriously audacious goals. From space flight to autonomous driving, it is clear that Musk is not one to sit on his laurels and coast.
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Indeed, it is the CEO’s compulsive energy and incredible ambitions that has made him the richest person alive. Recently, however, Musk’s salesmanship is brushing up against an unconvinced market when it comes to TSLA, and the company’s share price has been dropping.
After ending 2024 on a tear, TSLA is down over 20% for the year due to declining EV sales and a worsening brand for Musk himself. Can a robotaxi effort turn the narrative around?
Count one top investor known by the pseudonym Stone Fox Capital unconvinced that this will happen anytime soon.
“Tesla, Inc.’s robotaxi launch remains underwhelming, with delays, regulatory issues, and only supervised services—not true autonomous robotaxis as promised,” explains the 5-star investor, who is among the top 3% of TipRanks’ stock pros.
Stone Fox notes that Tesla is having issues shifting from supervised to unsupervised driving, disappointing shareholders who are counting on the Musk-led firm to deliver the goods.
The investor further details that Musk recently shared on the last earnings call that the company would “probably have autonomous ride-hailing in probably half the population of the U.S. by the end of the year.”
Needless to say, Stone Fox does not believe this assertion is grounded in reality, pointing out that at present the company is only operating a handful of supervised taxis.
Moreover, it is not just the future ambitions which the investor finds troubling, but the current operations as well. Stone Fox cites slumping EV sales, which the investor chalks up in large part to Musk’s declining popularity.
“Tesla is facing a real scenario where market share is slipping all around the world after peaking 2 years ago,” adds Stone Fox.
The stakes are high for the company, whose share price trades at very high multiples – a Forward 2026 Price-to-Earnings ratio of 128x – that assume earnings will be jumping up by 43%.
“The company has a massive opportunity ahead capable of moving the needle on the $1 trillion market cap, but if Tesla continues the path of overpromising and underdelivering, the stock is headed far lower,” concludes Stone Fox Capital, who rates TSLA a Sell. (To watch Stone Fox Capital’s track record, click here)
Wall Street presents a mixed picture when it comes TSLA. With 13 Buys, 15 Holds, and 8 Sells, TSLA has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $305.37 implies minimal movement in the year ahead. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.