Carlos Tavares, the former chief executive of Stellantis, has predicted that electric vehicle giant Tesla could cease to exist within a decade, driven by intense competition from China’s BYD and potential shifts in CEO Elon Musk’s focus to other ventures.
Tavares, a prominent figure in the automotive industry, stated in an interview with French newspaper Les Echos that he is unsure if Tesla will still be operational in 10 years, asserting it will be “defeated by the efficiency of BYD.”
His comments highlight the increasing pressure on Tesla from its Chinese rival, BYD, which officially surpassed Tesla in global electric vehicle sales earlier this year.
Tavares noted that BYD is aggressively gaining market share with more efficient and economical vehicles, particularly impacting Tesla’s presence in key markets.
In China, for example, Tesla’s market share has plummeted to approximately 5% from 16% in 2020, a decline largely attributed to intensified competition from BYD and other local manufacturers.
The former Stellantis chief also suggested that Elon Musk might eventually abandon the automotive sector to prioritize his other high-profile projects.
“We cannot rule out that, at some point, he will decide to leave the automotive industry to focus on humanoid robots, SpaceX or artificial intelligence,” Tavares said, referring to Musk’s diverse business interests.
Tavares warned that if such a shift occurs, Tesla’s stock market value would face a “colossal” loss, describing its current valuation as “stratospheric.”
Known for his outspoken views, Tavares resigned from his role at Stellantis late last year but continues to closely monitor the global automotive landscape.