Tesla might use extra of high-profile CEO Elon Musk’s divided focus at a vital juncture for the electrical automobile business, former board member Steve Westly mentioned Thursday.

“For any CEO of any of the highest firms on this planet, it is advisable to be laser-focused on what you are doing. And it seems now that Mr. Musk’s focus is in too many areas,” Westly advised CNBC on the annual VivaTech convention in Paris.

Westly mentioned Musk’s waning focus was a part of the explanation why Tesla was lagging behind its “Magnificent Seven” counterparts, and famous that Musk can be clever to comply with the management instance of tech darling Nvidia .

“In the event you have a look at folks like Jensen Huang — who’s arguably the best CEO on this planet proper now, persevering with to bang out superior outcomes — focus is the important thing. Tesla might use extra of it,” mentioned Westly, who’s managing director of enterprise capital agency The Westly Group and an early Tesla investor.

Latest sagas round employees layoffs and Musk’s pay have added to the mounting distractions going through the serial entrepreneur, with a latest income miss suggesting the corporate has “misplaced floor,” he added.

Simply how a lot of a legal responsibility Musk is for Tesla, nevertheless, Westly mentioned was “for the board to resolve.”

Westly personally predicted that Tesla would carry a brand new $25,000 automobile to the market by subsequent 12 months with out citing any proof such a automobile is within the works. He mentioned, “I feel it’s going to be a giant vendor.” Tesla not too long ago scrapped plans for a brand new low-cost EV, Reuters reported.

Throughout a first-quarter earnings name, Musk provided obscure particulars about Tesla’s plans for brand new fashions. He solely mentioned Tesla was planning to start out manufacturing of “new automobiles, together with extra inexpensive fashions,” on its present manufacturing unit strains. He didn’t give specs or pricing for these EVs.

“Do not wager towards the man [Musk], he is acquired a fairly good observe file,” Westly mentioned.

CNBC has reached out to Tesla for remark.

Tesla upset buyers final month with its largest quarterly income decline since 2012, including to destructive information for the corporate after it introduced a greater than 10% discount quarterly revenue decline since 2012, including to destructive information for the corporate after it introduced a greater than

In the meantime, Musk’s concurrent commitments at his numerous different ventures, together with SpaceX, X, Neuralink and The Boring Firm, have sparked the pay package .

Tesla’s slowdown comes at a vital second for the electrical automobile business, amid elevated competitors and a rising commerce dispute between Washington and Beijing over perceived Chinese language subsidies. Final week, U.S. President Joe Biden slapped recent 100% tariffs on Chinese language electrical automobiles, beginning this 12 months, in a transfer he mentioned was to forestall China “dumping” low-cost merchandise into the market.

— CNBC’s Lora Kolodny contributed to this text.

Correction: This text has been up to date to extra precisely replicate Tesla’s communications on potential lower-cost fashions.