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Tesla<\/a> has had a rough 2024, with its shares down 34% year to date. But the electric-vehicle space in general is having a difficult time, and, relatively speaking, Elon Musk\u2019s carmaker is sitting pretty, believes one industry observer.\u00a0<\/p>\n CFRA automotive analyst Garrett Nelson, speaking to<\/a> Fox Business this week, noted that Tesla rival Fisker recently hired<\/a> restructuring advisors amid talk of a possible bankruptcy. And major automakers, he added, are turning their focus more to hybrids<\/a>\u2014which give owners greater fuel efficiency without the range anxiety\u2014as EV sales growth slows down.\u00a0<\/p>\n \u201cThat really opens up a lane for Tesla to grow their market share even more in the coming years,\u201d Nelson said.\u00a0<\/p>\n While Musk\u2019s carmaker faces challenges in China, where EV competition is intense, Nelson said, \u201cwe kind of view Tesla as the best house on a bad block in the Western market.\u201d\u00a0<\/p>\n Another sign of that \u201cbad block\u201d was Tesla rival Rivian\u2014amid doubts<\/a> about its long-term prospects\u2014recently announcing it would delay construction<\/a> of a factory in Georgia and save money by instead building its upcoming new models at its existing plant in Illinois.<\/p>\n \u201cThere\u2019s a lot of distress taking place in the EV industry,\u201d Nelson said.<\/p>\n Of course, Tesla had its own existential struggles as an EV startup not so long ago.\u00a0<\/p>\n But Tesla today, Nelson said, \u201cis a lot different than the company of three or four years ago. The company has an investment-grade balance sheet. They\u2019re sitting on more than $29 billon of cash, with hardly any debt.\u201d<\/p>\n One thing that\u2019s changed since then is Musk buying Twitter<\/a>, now X, and going on to voice or amplify sometimes controversial positions on the platform.<\/p>\n On Thursday, Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, voiced frustration<\/a> with Musk\u2019s leadership and public behavior while speaking to<\/a> Yahoo<\/a> Finance. \u00a0<\/p>\n \u201cThe original story that I think most investors bought into with Tesla didn\u2019t really include Elon and Twitter\u2026For a long time, we all hoped that it really wouldn\u2019t affect Tesla and the demand for its products,\u201d Gerber said. \u201cWe all know that that has now happened. The demand for Tesla products is obviously lower. They\u2019ve had to discount and do many things that hurt margins and returns and, ultimately, profits for Tesla.\u201d<\/p>\n As for Nelson, when asked if Musk\u2019s \u201cerratic and compulsive behavior\u201d had played a role in the stock\u2019s decline, he answered, \u201cOf course it does. The stock price reflects all available information regarding the company, including Musk\u2019s behavior.\u201d\u00a0<\/p>\n But, he argued, the pullback in Tesla share was overdue: \u201cIf you look, last year Tesla shares more than doubled, and so for the stock to have a 30% pullback or so is not all that surprising.\u201d\u00a0<\/p>\n His firm has bought has bought the dip, he said, and he sees shares going 68% higher than today\u2019s level.\u00a0<\/p>\n<\/div>\n\nSubscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up<\/a> for free.<\/div>\n