Beleaguered electric vehicle maker Tesla has been forced to contend with a tumultuous past few months, but its woes are not over yet, according to Boris Schlossberg, managing director of FX strategy at BK Asset Management. Shares of Tesla have tumbled 42% in 2025, erasing their postelection rally. On Thursday, the stock briefly slipped as much as 2.5% after Tesla recalled 46,000 Cybertrucks due to a cosmetic exterior panel that could increase the risks of a crash. TSLA 1Y mountain TSLA 1Y chart But in an interview on CNBC's " Power Lunch " on Thursday, Schlossberg said Tesla has further to fall. The main reason is because Tesla has so far been "treated as a tech fantasy on autonomous driving," the money manager said. But the longer it takes for Tesla to crack autonomous driving, the more analysts might start treating the stock like an ordinary automobile company. " Valuation and everything else at Tesla is really dependent upon this dream of autonomous driving, and until they actually achieve it, [the stock] could be rerated as purely a core car company," he said. "And the car business is a tough business — it has much lower multiples than Tesla is getting — so there's so much more compression to go in Tesla, unless it really achieves a breakthrough. So at this point, I think it's really not a buy." Schlossberg also currently has a hold rating on discount retailer Five Below , and views Mediterranean fast-casual chain Cava as a pass as well. "Love the business, hate the stock," Schlossberg said of Cava. JPMorgan upgraded its investment opinion on Cava on Thursday, saying investors should buy the fast-casual restaurant stock after its recent decline.
