Carlos Tavares: Tesla overvalued, BYD set to overtake
Carlos Tavares warns Tesla is overvalued as BYD gains ground
Carlos Tavares: Tesla overvalued, BYD set to overtake
Ex-Stellantis chief Carlos Tavares says Tesla is overvalued, losing ground to BYD amid 2025 sales drops, model delays, and a contested $1T Musk pay package.
2025-10-29T06:05:15+03:00
2025-10-29T06:05:15+03:00
2025-10-29T06:05:15+03:00
Former Stellantis chief Carlos Tavares has cast doubt on Tesla’s future. In an interview with Les Echos, he argued that the American brand is significantly overvalued and could soon cede ground to China’s BYD.According to Tavares, Tesla lost its edge because of Elon Musk’s management choices, as he became distracted by politics, SpaceX, and AI initiatives. He pointed to a sharp drop in the company’s sales in 2025 and to delays in launching the refreshed Model 3, Model Y, and the Cybertruck—setbacks that, in his view, eroded buyer confidence. When attention strays and timelines slip, trust is usually the first casualty.Tavares said Tesla’s stock was poised for a massive fall, called the company’s valuation astronomical, and noted he was unsure the brand would still be around in ten years. He added that BYD already outpaces the American marque in efficiency and technology.Meanwhile, Tesla is grappling with an internal crisis: the board is weighing a proposed $1 trillion compensation package for Musk despite falling sales and shareholder dissatisfaction. Board chair Robyn Denholm, in a letter to colleagues, emphasized that Musk’s presence is critical to the company, though she offered no concrete assurances of success. The gap between assurances and outcomes is exactly what tends to unsettle shareholders.
Tesla, BYD, Carlos Tavares, overvalued, valuation, EV market, sales drop 2025, Model 3, Model Y, Cybertruck, Elon Musk, $1T compensation, stock fall, competition, efficiency, technology
2025
Michael Powers
news
Carlos Tavares warns Tesla is overvalued as BYD gains ground
Ex-Stellantis chief Carlos Tavares says Tesla is overvalued, losing ground to BYD amid 2025 sales drops, model delays, and a contested $1T Musk pay package.
Michael Powers, Editor
Former Stellantis chief Carlos Tavares has cast doubt on Tesla’s future. In an interview with Les Echos, he argued that the American brand is significantly overvalued and could soon cede ground to China’s BYD.
According to Tavares, Tesla lost its edge because of Elon Musk’s management choices, as he became distracted by politics, SpaceX, and AI initiatives. He pointed to a sharp drop in the company’s sales in 2025 and to delays in launching the refreshed Model 3, Model Y, and the Cybertruck—setbacks that, in his view, eroded buyer confidence. When attention strays and timelines slip, trust is usually the first casualty.
Tavares said Tesla’s stock was poised for a massive fall, called the company’s valuation astronomical, and noted he was unsure the brand would still be around in ten years. He added that BYD already outpaces the American marque in efficiency and technology.
Meanwhile, Tesla is grappling with an internal crisis: the board is weighing a proposed $1 trillion compensation package for Musk despite falling sales and shareholder dissatisfaction. Board chair Robyn Denholm, in a letter to colleagues, emphasized that Musk’s presence is critical to the company, though she offered no concrete assurances of success. The gap between assurances and outcomes is exactly what tends to unsettle shareholders.
