Concerns Regarding the Future Performance of Tesla Shares

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Tesla, the leading electric vehicle (EV) manufacturer, is currently facing a period of financial turbulence. The company's profitability has been dwindling, as indicated by its stock trading at $350.68, a 3.59% decrease from its previous mark. This slump is occurring despite Tesla's massive market capitalization of $1.1 trillion.

The company's CEO, Elon Musk, has expressed less enthusiasm for EVs compared to his interest in robotics and artificial intelligence. However, Tesla's future may not solely rely on its EV business. Musk suggests that up to 80% of the company's future value could come from its line of Optimus humanoid robots.

Tesla's proposed compensation package for Musk is ambitious, requiring the delivery of 20 million Tesla vehicles and meeting adjusted EBITDA benchmarks. The package also necessitates a significant increase in EV sales, as it includes a requirement for 10 million active full self-driving subscriptions. This goal would require a substantial boost in Tesla's sales numbers, which have been plummeting globally as of late.

Despite these challenges, Tesla's core EV business could be strengthened by key societal figures such as Elon Musk, who retains a large stake, as well as executives like Vaibhav Taneja and Tom Zhu. Additionally, institutional investors or new strategic partners focused on EV market growth could play a crucial role. However, insider selling activity has been notable in the past year, indicating mixed confidence among current shareholders.

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It's worth noting that Tesla's gross margin is 17.48%, and the company's Master Plan Part 4 focuses on autonomous driving, artificial intelligence, and humanoid robots. The Cybertruck, however, has not been successful.

Tesla's stock is more than 25% off its highs, indicating a potential opportunity for investors who believe in the company's future prospects, particularly in the areas of robotics and AI. The company's focus on these areas, as outlined in Master Plan Part 4, could provide a pathway for Tesla to regain its financial footing and secure its position as a leader in the technology sector.