From Yahoo Finance: 2025-05-19 09:51:00

Tesla (TSLA) shares plummet due to valuation concerns, with Third Point cutting its entire stake in the company. Bradley Tusk criticizes Tesla as “massively overvalued” and highlights Elon Musk’s distractions impacting the company’s success.

Tesla’s EV sales decline globally, facing competition challenges. Despite Elon Musk’s potential focus on fixing issues, the company struggles to overcome a demand crisis. For instance, Tesla’s market share in California dropped from 60.1% in 2023 to 52.5% in 2024, despite increased electric vehicle purchases.

Aristotle Atlantic Large Cap Growth Strategy benefits from underweight exposure in Tesla, citing declining automobile sales due to factory changes and competition from BYD. The CEO’s association with President Trump harms Tesla’s brand image among traditional electric vehicle buyers.

While acknowledging Tesla’s potential, under-the-radar AI stocks offer greater promise for higher returns in a shorter timeframe. An AI stock has gained since the beginning of 2025 while popular AI stocks have lost around 25%. For a promising AI stock trading at less than 5 times earnings, check out the report on the cheapest AI stock.

Read more: Analyst Says Tesla (TSLA) ‘Massively Overvalued’ Amid Notion of Elon Musk’s ‘Magic Abilities’