Former Stellantis Chief Warns: “Tesla Could Abandon Auto Industry Within a Decade”

A former chief executive of Stellantis has issued a stark warning about Tesla’s future, predicting that the electric vehicle pioneer could exit the automotive industry entirely within the next 10 years as competition intensifies and margins continue to erode. He argues that the company’s market valuation—once larger than that of the world’s top ten carmakers combined—is unsustainable in a maturing EV market.

“Tesla’s stock market value loss will be colossal,” he said in a recent discussion with European industry analysts. “The company could decide it no longer sees the automotive sector as strategically viable and pivot away entirely.”

His comments strike a nerve in an industry now facing falling EV demand growth, price wars in China, rising manufacturing costs, and heavy losses for once-promising EV startups. But the idea that Tesla, the world’s most recognizable electric vehicle brand, might walk away from car manufacturing raises a much deeper question: Is the EV revolution entering a phase of consolidation where only diversified giants survive?

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Tesla: Technology Powerhouse or Auto Manufacturer?

At the core of the former Stellantis executive’s argument is a controversial premise: Tesla has never behaved like a traditional automaker. Instead, it has positioned itself as a hybrid of a technology platform, AI robotics company, and energy infrastructure developer—with cars as merely one product built on its software and battery platform.

He believes Tesla’s long-term strategy is already visible:

• Autonomous driving software sold via subscription revenue
• AI robotics like the Optimus humanoid project
• Energy products such as storage systems and grid-level batteries
• Data and software licensing for autonomous fleets

According to this view, Tesla may ultimately decide that its future cash flow and valuation belong to the robotics, AI, and energy markets—not auto manufacturing, which historically delivers thin profits and relentless regulatory pressure.

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Mounting Pressures in the EV Market

The challenge facing Tesla—and all EV makers—is that the market is no longer in an explosive growth cycle. Instead, it has become capital-intensive, price-sensitive, and brutally competitive, especially as Chinese manufacturers scale aggressively and undercut global prices.

Tesla has already slashed vehicle prices globally multiple times, compressing margins to retain market share. Meanwhile, legacy manufacturers like Ford, Volkswagen, Hyundai, and Stellantis have delayed EV production targets and announced cuts in EV investment plans. The industry is acknowledging what analysts long feared: the economics of electric vehicles are harder than predicted.

Tesla’s position is unique—it still enjoys a powerful brand and a technology advantage—but that lead is shrinking. BYD now challenges Tesla’s global EV volume, European regulators are targeting Tesla’s Chinese-built vehicles with tariffs, and U.S. consumer adoption is slowing as charging infrastructure lags behind.

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A Pivot Already in Motion?

The former Stellantis chief believes Tesla is already preparing the exit ramp from the car business. He notes that:

• Tesla’s most ambitious public presentations focus on software and robotics, not vehicles.
• Elon Musk describes Tesla as “an AI and robotics company that happens to build cars.”
• Capital investment is shifting from gigafactories to Dojo supercomputers and AI training infrastructure.
• The company has promoted Robotaxi deployment as a turning point that could “10x Tesla’s value.”

In such a scenario, Tesla could:
✅ Spin off its automotive division
✅ License EV platforms to other manufacturers
✅ Become a software and AI supplier for the mobility industry
✅ Focus on autonomous fleet infrastructure and AI robotics

If executed, Tesla would retain value while shedding the capital burden of global vehicle production—effectively reversing its role in the industry it helped accelerate.

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What It Would Mean for Investors

If Tesla pivots away from vehicles, the market could face one of the largest equity revaluations in industrial history. The former Stellantis executive warns that Tesla’s market cap could fall sharply if investors decide the company is abandoning growth in favor of restructuring.

There is precedent for such a shift. Technology firms pivot regularly—e-commerce companies become cloud infrastructure leaders, search engines become AI labs—but for a manufacturing icon to exit its legacy business intentionally would be unprecedented.

Tesla investors have long tolerated volatility in exchange for disruptive potential. But abandoning vehicles could split investor sentiment:

Investor View	Reaction
Optimists	See Tesla as future AI platform leader
Realists	Demand new financial roadmap
Skeptics	Exit, calling pivot a “defeat”
Institutions	Reduce exposure due to uncertainty

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Industry Implications: A Shockwave for EVs

If Tesla leaves or de-emphasizes automotive manufacturing, the EV sector would experience an immediate power vacuum. Traditional automakers would likely benefit in the near term, especially those with strong plug-in hybrid strategies. Chinese EV makers would seize global share, while governments may rethink incentives heavily aimed at Tesla-led growth.

But the biggest blow would be psychological. Tesla is not just an automaker—it is a symbol of the EV revolution itself. If the pioneer walks away from the race it started, the message would be unmistakable: EVs were a chapter—not the book.

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Is the Prediction Realistic?

Tesla remains profitable, still leads the U.S. EV market, and continues to expand infrastructure globally. Critics argue the Stellantis veteran misunderstands Musk’s ambitions—which have always been larger than cars. But his warning is not about Tesla failing. It is about Tesla choosing to evolve faster than the auto industry can handle.

“Tesla may not die,” he said. “It may simply become something else—and the auto world is not ready for that.”