As Tesla continues to try to claw its way back to the top of the heap after a rough start to 2025, at least one investor is advising caution with regard to the EV company’s newest business strategy.
According to TipRanks, Mark Holder, aka Stone Fox Capital, is hesitant about the company’s new plan to get to its goals of pushing the $1 trillion value mark and tells investors to steer clear.
It’s been a rough start to 2025 for Tesla; the company has seen sales tank across the globe, and its stock price has dipped considerably from its peak. The company has pulled leasing options for several vehicles in Europe and has watched the Cybertruck quickly become an albatross around its neck as its market share dwindles.
CEO Elon Musk has a plan to get them back, and he’s banking hard on self-driving cars and AI to do it. He’s investing heavily in the company’s robotaxi plans and the Cybercab, a fully automated vehicle that doesn’t even have a steering wheel or pedals in it, to help get them back to the top. But Holder is incredibly skeptical of those plans and the likelihood that they’ll be successful on the company’s timeline.
“Tesla, Inc.’s robotaxi launch remains underwhelming, with delays, regulatory issues, and only supervised services — not true autonomous robotaxis as promised,” Holder said.
It’s true; the autonomous driving tests happening in Austin have been fraught with issues. It has routinely struggled with basic driving decisions, and reports of cherry-picked safety data to make the company’s autopilot look better have loomed. Meanwhile, competitors like Waymo have continued to grow by leaps and bounds, expanding testing into more and more cities while unveiling full service in others.
With Tesla struggling to get off the ground ahead of its promise to have the Robotaxi program available for millions of Americans by the end of the year, it’s enough to make Holder question whether the company is still the juggernaut it’s been in the past.
“Tesla is facing a real scenario where market share is slipping all around the world after peaking two years ago,” he said. “The company has a massive opportunity ahead capable of moving the needle on the $1 trillion market cap, but if Tesla continues the path of overpromising and underdelivering, the stock is headed far lower.”
Ultimately, Holder recommended investors sell Tesla stock for now, in what is the latest ill omen for the EV giant.
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