Tesla: The House of Musk Is Cracking—One Meme at a Time
Tesla Inc. ($TSLA) was once the crown jewel of the EV revolution, the company that promised to take the world into an electrified, self-driving future while leaving fossil fuels and traditional automakers in the dust. But today, its stock is on a slow, steady decline, and the reasons are glaringly obvious—Tesla, and more specifically, Elon Musk, can’t seem to focus on anything long enough to do it exceptionally well.
The warning signs have been flashing for a while. Tesla has expanded its global footprint at an alarming rate, pouring billions into manufacturing plants across the world with seemingly little thought to actual demand. The Berlin Gigafactory, for instance, has been struggling to justify its existence in a European market that is moving away from Tesla’s offerings in favour of cheaper, more practical alternatives. And then there’s China—Musk’s high-stakes bet that has an expiry date. Most people don’t realise that Tesla’s Shanghai factory operates under terms that could allow the Chinese government to seize it in the not-so-distant future. That’s right, Tesla’s most successful production hub could one day simply stop being Tesla’s at all.
Adding to the chaos, Tesla is now facing legal action from the European Union over its decision to use the Shanghai plant to produce vehicles destined for Europe instead of manufacturing them in Germany. The move, aimed at cutting costs, has infuriated EU regulators, who see it as a blatant circumvention of European manufacturing policies. Instead of bolstering its Berlin operations, Tesla is essentially outsourcing its European production to China, undermining the very rationale for the German Gigafactory’s existence. So, while Tesla continues to expand its footprint with expensive new facilities, it’s also making business decisions that erode their necessity—further proof that the company’s global strategy is little more than an erratic game of trial and error.
Then there’s the issue of diversification—or rather, the lack of meaningful success outside of EVs. Tesla once had ambitions to dominate solar energy with SolarCity. That’s now an afterthought. The Cybertruck was meant to be a game-changer, but instead, it’s an expensive niche product that has done little to expand Tesla’s market share. The Semi? Barely visible. The Roadster 2.0? Still a fantasy. Instead of honing in on what Tesla does best, Musk is off chasing robots, brain chips, and underground tunnels, as if running one of the world’s most scrutinised car companies isn’t enough of a challenge.
But the real problem? Musk himself. The man who once captivated investors and customers alike with his vision is now more preoccupied with politics, his alignment with President Trump, and his non-stop social media antics. His reputation as a genius entrepreneur is slowly being replaced by that of an erratic, impulsive billionaire who spends more time posting memes and stirring controversy than actually managing his company. His association with the MAGA movement has only alienated large chunks of Tesla’s customer base, many of whom once saw him as a progressive icon.
Tesla was built on the idea that it was different from traditional automakers, that it was leaner, smarter, and more agile. But today, it looks more like a chaotic empire overstretched by ambition and mismanagement, led by a CEO who seems more interested in trolling online than addressing the company’s very real problems. The stock’s downward trajectory isn’t an anomaly—it’s a consequence. And unless Musk finds a way to stop being his own worst enemy, Tesla’s long-term dominance is anything but assured.
Verdict: SELL
Tesla’s fundamentals are deteriorating. The company is expanding into markets that don’t justify the investment, facing regulatory and legal battles that threaten its global operations, and suffering from a leadership crisis with a CEO more focused on politics and memes than profitability. While Tesla once led the EV charge, its competitors are not just catching up—some, like BYD, are overtaking it. Meanwhile, Tesla’s chaotic strategy is turning investors away. The stock’s steady decline reflects reality—this is a company losing its edge, and Musk is too distracted to fix it.
Bill White Says...
“Tesla isn’t a car company anymore—it’s a very expensive hobby for a billionaire who can’t focus.”