With Tesla (NASDAQ:TSLA) stocks down 25% year-to-date, the road ahead seems rocky. The e-vehicle titan is facing a long-term decline as competitors outmaneuver it in the flourishing electric car market.

For over a decade, Tesla dominated the fully electric vehicle space, offering subpar quality EVs at premium rates. However, this stronghold has since crumbled with the surge of rivals like General Motors (NYSE:GM), Toyota Motor (NYSE:TM), and Volkswagen (ETR:VOW3), who are swiftly scaling their own electric vehicles at more affordable prices, leaving Tesla trailing behind.

A Stripped ‘Magnificent’ Facade

Despite widespread issues, the soaring trajectory of Tesla’s stock and CEO Elon Musk’s image remained undisturbed. Between 2011 and 2021, TSLA stock skyrocketed astonishing 20,250%, evolving from a humble $2 per share to over $400. It was praised as a leading growth stock, even basking in the glory days alongside other “Magnificent 7” tech stocks such as Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT).

However, Tesla’s share price has plunged 54% from its peak in November 2021, and strikingly lagged behind the rest of the Mag 7. Such a shift in fortune paints a different picture of the once-revered Tesla as the top growth stock.

TSLA Tumbles: Losing Ground

Toyota serves as a fitting emblem of the competitive menace looming over Tesla. The Japanese auto giant plants to sell 3.5 million fully electric vehicles yearly by 2030, with plans to transition all their vehicles to electric models. Striking a bitter irony, Toyota’s stock soared 25% year-to-date, while Tesla’s share price nosedived 25% in the same period.

And it’s not just Toyota. Over a dozen automakers have cast their lot with fully electric vehicles, offering superior quality and competitive pricing, tightening the noose around Tesla’s market supremacy. Tesla’s share of the U.S. electric vehicle market plummeted from 62% to a record low of 50% in 2023, indicating a deteriorating TSLA stock outlook as competition continues to intensify.

Multiplying Woes

China’s economic slump, undercutting discounts, and a lack of compelling new electric vehicle launches have compounded Tesla’s predicament. With weak demand, declining market share, and eroded margins, Tesla’s seemingly invincible façade is showing cracks. The unimpressive Cybertruck and a speculated “Redwood” EV slated for 2025 won’t likely suffice. Grim fourth-quarter earnings and bleak forecasts paint a worrying picture of Tesla’s immediate road ahead.

Dump TSLA Stock

All signs point to Tesla succumbing to vulnerabilities like never before. With demand waning, market share ebbing, and margins thinning, the charm seems to be wearing off. Investors should cash in their chips and exit now. TSLA stock is running on empty.

On the date of publication, Joel Baglole held long positions in NVDA and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.