Tesla has the opportunity to increase its market share further due to the struggles of EV startups and the increased focus of legacy automakers on hybrids.

In the ever-changing landscape of the electric-vehicle industry, Tesla has been no stranger to turmoil in 2024. With its shares down 34% year to date, the company has faced its fair share of challenges. However, amidst the difficulties facing the EV space as a whole, one industry observer believes that Tesla is still in a strong position compared to its competitors.

CFRA automotive analyst Garrett Nelson recently spoke to Fox Business, highlighting the struggles of Tesla’s rival Fisker, who has hired restructuring advisors amid talk of bankruptcy. As major automakers shift their focus towards hybrids, Nelson sees an opportunity for Tesla to further expand its market share in the coming years.

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While Tesla is not without its own challenges, particularly in the competitive EV market in China, Nelson views the company as the best option in the Western market. With rival Rivian facing doubts about its long-term prospects and delaying the construction of a new factory, it’s clear that the EV industry is experiencing some distress.

Despite the current setbacks, Nelson remains optimistic about Tesla’s future. The company has come a long way since its early days as an EV startup, now boasting an investment-grade balance sheet with over $29 billion in cash and minimal debt. While Tesla’s CEO, Elon Musk, has garnered attention for his controversial behavior on social media, Nelson believes that the recent decline in Tesla’s stock price was overdue following a significant increase last year.

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As the industry continues to evolve, Nelson’s firm is confident in Tesla’s prospects, with a target price of $275. Despite the challenges ahead, Tesla remains a dominant player in the electric-vehicle market, poised to weather the storm and continue its growth in the years to come.

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