Why are electric cars not the future?

Regarding the question of whether Tesla's stock can reach $400, there are significant divergences among market analysts currently. Optimists like Wedbush analyst Dan Ives believe that driven by Tesla's artificial intelligence, autonomous driving, and robotics businesses, its market capitalization could reach $2 to $3 trillion by 2026, corresponding to substantial upside potential for the stock price, with his target price set at $600. Similarly, New Street Research is also bullish on Tesla's leading position in the robotaxi sector, believing its structural advantages could drive the stock price up by 40%. However, UBS and GLJ Research remain cautious. The former maintains a sell rating due to valuation concerns with a target price of only $247, while the latter, despite raising its target price to $25.28, still considers the current stock price significantly overvalued and the core automotive business challenged. Recently, Tesla's deliveries fell short of expectations, with its global delivery volume in Q4 2025 declining year-over-year, further fueling market skepticism about its near-term performance. Overall, whether Tesla's stock price can surpass $400 will hinge on the balance between its AI business commercialization progress and core automotive operations, requiring investors to closely monitor the alignment between technological execution and financial performance.

The growth in electric vehicle (EV) sales is mainly driven by three factors: mature technology, policy incentives, and improved infrastructure. As battery costs decline, the prices of mainstream EVs have approached those of traditional fuel-powered vehicles. For example, new models like the BYD Seal 6 have entered the market with more competitive pricing. In the first nine months of 2025, sales of pure electric models surged 102.6% year-on-year to 20,167 units. The government provides substantial support through the *2030 Electric Vehicle Development Roadmap*, including income tax exemptions of up to 100% for a period of 10 years, import duty waivers, and subsidies for charging pile construction, with a plan to achieve a 15% EV penetration rate by 2030. The charging network is expanding rapidly: currently, over 2,000 public charging piles have been deployed nationwide, and this number is expected to increase to 4,000 by 2025, alleviating users' range anxiety. In addition, local automakers such as Proton have collaborated with Chinese enterprises to launch models adapted to local needs. The intensive product introduction by international brands like Tesla and Xpeng has further stimulated market vitality. Meanwhile, rising gasoline prices and increased environmental awareness have led about 25% of consumers to switch to EVs. This multi-party synergy is steadily pushing Malaysia toward its goal of becoming an EV hub in Southeast Asia.

Tesla has demonstrated strong recovery momentum in the Malaysian market, with annual deliveries exceeding 6,900 units in 2025. The Model 3 emerged as the best-selling electric sedan, while the Model Y topped the sales charts in November, benefiting from government tax incentives and the ongoing expansion of charging infrastructure (157 charging points were operational by the end of 2025). In Q1 2026, Tesla's global deliveries grew 32% year-on-year, with the Asia-Pacific market (including Malaysia) expanding by 68%. The refreshed Model 3 (Highland) performed particularly well in regional markets. Despite global competitive pressures from brands like BYD - with Q4 2025 deliveries declining 15.6% year-on-year - Malaysia maintained rapid growth as an emerging market. 2025 sales increased 2.5-fold compared to 2024, with projections exceeding 70,000 units in 2026. Tesla is addressing challenges through model updates (including Cybertruck production) and strategic pivots (such as its Robotaxi initiative), while maintaining competitive advantages through its Malaysian market share and charging network. Looking ahead, localized policy support and growing consumer demand for EVs are expected to sustain Tesla's market recovery in Malaysia.

The Malaysian electric vehicle (EV) market showed significant growth in 2025, with the sales growth rate of battery electric vehicles (BEVs) far exceeding the industry average. Data shows that cumulative BEV sales reached 36,690 units in the first 11 months of 2025, an 85% year-on-year increase, with November sales alone reaching 5,417 units, surging nearly 200% year-on-year. This growth was primarily driven by three factors: first, the intensive launch of new models like the BYD Seal 6 and Xpeng G6 expanded market options; second, consumers rushed to purchase vehicles before year-end tax incentives for imported vehicles expired; third, sustained government policy support, targeting a 20% new energy vehicle (NEV) market share by 2030. Notably, hybrid vehicles also achieved 20.5% year-on-year growth, reflecting rising overall NEV acceptance. The EV market penetration rate increased from 5% in 2024 to 7%, though factors like charging infrastructure development and gasoline subsidy adjustments may result in a gradual transition. Among mainstream brands, BYD and Denza collectively sold 11,961 units, Proton's e.MAS7 sold 7,740 units, and Tesla delivered 5,467 units. Local automakers Perodua and Proton are also actively expanding their presence through new EV models like the QV-E. While traditional fuel vehicle sales saw a marginal 1% decline, NEVs have emerged as the market's primary growth driver.

Tesla is currently facing certain financial pressures, but its overall development momentum remains resilient. According to its Q3 2025 financial report, although revenue increased by 12% year-on-year to $28.1 billion, net profit dropped by 37% year-on-year to $1.37 billion, mainly due to price wars, increased R&D investment in autonomous driving, and the expiration of U.S. tax credit policies. Notably, the Malaysian market performed strongly: cumulative deliveries of electric vehicles exceeded 6,900 units in 2025, the Model 3 became the best-selling electric sedan, and the charging network expanded to 157 stations. While net profit declined by 52.23% in 2024, the gross profit margin rebounded to 18% in Q3 2025, indicating that cost control measures have taken effect. Tesla announced that all models will maintain their current prices in 2026 (starting at RM169,000 for Model 3 and RM195,450 for Model Y), demonstrating its strategy to cope with the cancellation of tax incentives through economies of scale. The capital market remains optimistic about its long-term prospects, with a current price-to-earnings ratio of approximately 300 times and a market value of $1.63 trillion, reflecting market expectations for its AI and autonomous driving technologies. The pressure on short-term financial indicators and long-term technological layout constitute the development characteristics of Tesla at this stage.