Kathmandu. Tesla, the world’s most popular electric vehicle (EV) maker, faces a bizarre paradox in 2025.
On the one hand, the company’s stock price has reached new heights, while on the other hand, its global market share is declining. This ‘strange’ journey has excited and worried investors and market analysts alike.
Share Bullish Run
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Tesla’s share price is expected to rise tremendously in 2025. It recently reached a new record of $436 per share. This growth has been driven mainly by two factors.
Elon Musk’s investment: The company’s CEO Elon Musk has bought a large number of shares.
Financial firms such as Pepper Sandler and Baird have set Tesla’s target price of $500 and $540, respectively.TAG_CLOSE_span_34 TAG_OPEN_span_34 They believe in Tesla’s AI and robotics technology. Which they see as the main growth driver of the future.
Tesla’s market value is still around $1.4 trillion. This shows the company’s strong financial position.
Big challenge of market share{
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While Tesla dominates the stock market, it is facing stiff competition in the electric vehicle market. Tesla’s global market share is declining.
America: Its market share in the U.S. has dropped to 38%. This is the lowest in the last decade. The expiration of federal tax breaks and competition from other companies are the main reasons for this.
Europe and China: In Europe’s main markets, such as Germany and France, sales fell by more than 60%. Similarly, Tesla’s sales in China have fallen by 7-15% this year.
Tesla’s biggest competitor is China’s BYD. It now occupies more than 15% of the market share, surpassing Tesla worldwide.
The Future of Tesla: Not a Car AI Company
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Tesla is changing its strategic direction amid increasing competition and declining market share. The company is now moving away from being just an electric vehicle manufacturer, but an AI-powered hardware and software company. Its main bets are on robotaxi services and fully autonomous driving technology.
However, it also has major challenges, such as regulatory approval. However, the company believes that these AI and robotics innovations will redefine its future value.
Market analysts have suggested that Tesla needs to aggressively improve battery technology, autonomous driving AI and global production capabilities to maintain its dominance in the global market. While there is opportunity in emerging markets such as Asia, Latin America and Africa, Tesla will be able to move forward only by understanding local competition and policies.
