Stellantis Ex-CEO Predicts Tesla Will Exit Auto Industry Within 10 Years, Citing BYD Efficiency

Former Stellantis CEO Says The Quiet Part Out Loud About Tesla’s Future: Predicts Exit from Auto Industry Within 10 Years

Former Stellantis Ex-CEO Carlos Tavares has dramatically predicted that the Musk-led automaker Tesla could “leave the automotive industry” entirely within the next ten years. In a candid interview with the French newspaper Les Echos ahead of his book release, Tavares attributed this stark forecast to CEO Elon Musk’s divided focus on multiple ventures (like SpaceX and AI) and the intensifying competitive threat from Chinese rivals like BYD, which he argues is already beating Tesla on efficiency. The bold claim comes as Tesla struggles with supply chain setbacks and faces a monumental $1 trillion pay package vote for its CEO.

Tavares Says Pressure on Tesla Will Lead to Exit

Tavares did not mince words regarding the challenges facing the American EV giant, arguing that Tesla’s future is jeopardized by both internal distraction and external efficiency. (Stellantis Ex-CEO)

• Exit Prediction: Tavares predicts that Elon Musk will eventually “decide to leave the automotive industry to refocus on humanoid robots, SpaceX, or artificial intelligence,” leading to Tesla’s eventual exit from the car business. He stated, “I’m not sure that Tesla will still exist in 10 years”.
• BYD’s Superior Efficiency: Tavares explicitly pointed out that BYD is “beating Tesla at its own game,” arguing that the Chinese firm produces “cheaper, more efficient vehicles”.
• Colossal Valuation Loss: Tavares warns that Tesla’s eventual stock market loss “will be colossal because this valuation is simply stratospheric”.

Tesla’s Uphill Battle to Retain its CEO and Market Share

Tavares’s remarks arrive at a highly volatile time for Tesla, which is actively trying to secure its leadership and market position.

• Executive Retention: Tesla is currently fighting to retain Elon Musk as CEO. Shareholders are scheduled to vote on November 6 on whether to approve a massive, 10-year, $1 trillion pay package for Musk, which the board claims is necessary to achieve ambitious goals, including boosting the company’s market cap to $8.5 trillion.
• Market Contraction: Tesla faces significant headwinds from external factors, including the loss of the $7,500 Federal EV tax credit in the U.S. and supply chain setbacks triggered by tariffs. Tesla’s market share in the U.S. and key global markets is already shrinking.
• Mitigation Efforts: Tesla recently released lower-cost versions of its volume-selling models, the Model 3 and Model Y Standard, in an effort to combat the market decline.

Tavares’s Insights on Industry Instability

The former CEO’s new book also provided insights into the fragility of Stellantis’s own structure.

• Stellantis Concerns: Tavares expressed worry that Stellantis’s “three-way balance between Italy, France, and the US will break” if the company fails to appease its various stakeholders.
• Survival Dependent on Unity: He noted that the company’s survival depends on management paying attention to unity “every day” amidst the pressures of being pulled in multiple directions.

Final Thoughts

The comments from the influential former Stellantis Ex-CEO present a serious challenge to Tesla’s long-term narrative, suggesting that the company’s primary weaknesses are its CEO’s divided attention and the relentless, cost-efficient competition from BYD. While Tavares’s insights are often controversial, his prediction underscores the intense pressure Tesla faces as it attempts to maintain its market dominance in an EV landscape where price and manufacturing efficiency are quickly becoming the most critical factors.

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