If buying
Tesla (NASDAQ: TSLA) is indeed going to
set an investor up for life, then its robotaxi business will have to be successful, and CEO Elon Musk will have to achieve his aim of making unsupervised full self-driving (FSD) software publicly available. While it's uncertain if those things will happen, there's one trend in the electric vehicle (EV) industry that significantly strengthens the case for
Tesla. But to understand it, it's important to start by addressing one key issue.Musk is a divisive figure, but he's not the only CEO to attract controversy or take positions that some find disagreeable and others find enlightened. This isn't the place to enter that debate, but it is the place to look at matters rationally. A standard narrative has it that
Tesla's declining electric vehicle sales in 2025 are a consequence of Musk's political involvement. If this were the case,
Tesla would, indeed, have a major structural issue that definitely wouldn't make it a stock to buy in hopes of it putting you on easy street. My opinion is that the evidence for this argument is weak.
Tesla doesn't have a sales problem because of Musk. It has a Model Y problem, and it has an interest rate problem. Let's put it this way: According to Cox Automotive's Kelley Blue Book report, sales of
Tesla's Model Y (its best-selling sport utility vehicle, or SUV) were down more than 24% in 2025 year to date through mid-July compared to the same period in 2024. In contrast, sales of its second best-selling car, the
Tesla Model 3 (a mid-size sedan), rose almost 38% on the same basis. Continue reading
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