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Is Elon Musk to blame for Tesla's struggles? Experts weigh in
Tesla's profits plunged 16% over a three-month stretch ending in June.
Link to tweet
https://abcnews.go.com/Business/elon-musk-blame-teslas-struggles-experts-weigh/story?id=124039268&cid=social_twitter_abcn
Tesla, the electric carmaker led by Elon Musk, suffered a sharp drop in profits over a recent three-month period as car sales slowed and tariffs hiked costs, the company said this week.
Shareholders envisioned a different outcome when Tesla stock surged more than 50% in the aftermath of the November 2024 election of President Donald Trump, then a close ally of Musk. Since a recent peak in December, the majority of those gains have been erased......
The recent struggles at Tesla have coincided with increased competition in the electric vehicle (EV) industry, posing a question for analysts: Is Musk partially to blame?
Experts who spoke to ABC News acknowledged the surge of EV competition and credited Musk with pushing the company into potential growth areas like humanoid robots and self-driving taxis, the latter of which are being tested in Austin, Texas. The company's downturn in part reflects a transition from EVs to those new products, which have yet to generate meaningful revenue, they added.
Still, the experts said, Musk bears some of the blame for the company's difficulty fending off other EV makers as well as a delayed rollout of alternate products. They also pointed to losses suffered as result of some of Trump's policies, which Musk struggled to mitigate while serving in the administration.
"Musk is CEO -- the buck stops with him. As a CEO in a competitive environment, he's the one who has to have the vision and lead the troops," David Meier, a senior investment analyst at The Motley Fool, told ABC News. "But there's a lot going on in the world that impacts Tesla's business."
Shareholders envisioned a different outcome when Tesla stock surged more than 50% in the aftermath of the November 2024 election of President Donald Trump, then a close ally of Musk. Since a recent peak in December, the majority of those gains have been erased......
The recent struggles at Tesla have coincided with increased competition in the electric vehicle (EV) industry, posing a question for analysts: Is Musk partially to blame?
Experts who spoke to ABC News acknowledged the surge of EV competition and credited Musk with pushing the company into potential growth areas like humanoid robots and self-driving taxis, the latter of which are being tested in Austin, Texas. The company's downturn in part reflects a transition from EVs to those new products, which have yet to generate meaningful revenue, they added.
Still, the experts said, Musk bears some of the blame for the company's difficulty fending off other EV makers as well as a delayed rollout of alternate products. They also pointed to losses suffered as result of some of Trump's policies, which Musk struggled to mitigate while serving in the administration.
"Musk is CEO -- the buck stops with him. As a CEO in a competitive environment, he's the one who has to have the vision and lead the troops," David Meier, a senior investment analyst at The Motley Fool, told ABC News. "But there's a lot going on in the world that impacts Tesla's business."
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