Tesla could use more of Elon Musk's focus, former board member says

Tesla could use more of high-profile CEO Elon Musk's divided focus at a critical juncture for the electric vehicle industry, former board member Steve Westly said Thursday.

"For any CEO of any of the top companies in the world, you need to be laser-focused on what you're doing. And it appears now that Mr. Musk's focus is in too many areas," Westly told CNBC at the annual VivaTech conference in Paris.

Westly said Musk's waning focus was part of the reason why Tesla was lagging behind its "Magnificent Seven" counterparts, and noted that Musk would be wise to follow the leadership example of tech darling Nvidia .

"If you look at people like Jensen Huang — who is arguably the greatest CEO in the world right now, continuing to bang out superior results — focus is the key. Tesla could use more of it," said Westly, who is managing director of venture capital firm The Westly Group and an early Tesla investor.

Recent sagas around staff layoffs and Musk's pay have added to the mounting distractions facing the serial entrepreneur, with a recent revenue miss suggesting the company has "lost ground," he added.

Just how much of a liability Musk is for Tesla, however, Westly said was "for the board to decide."

Westly personally predicted that Tesla would bring a new $25,000 car to the market by next year without citing any evidence such a vehicle is in the works. He said, "I think it'll be a big seller." Tesla recently scrapped plans for a new low-cost EV, Reuters reported.

During a first-quarter earnings call, Musk offered vague details about Tesla's plans for new models. He only said Tesla was planning to start production of "new vehicles, including more affordable models," on its existing factory lines. He did not give specs or pricing for