We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Tesla: 4 Questions Rival Automakers Are Asking About the EV Maker

2 0 0
13.01.2020

CES 2020, held last week, coincided with Tesla (TSLA) - Get Report shares hitting all-time highs right around the $500 mark after a 10% or so run during that week alone. This left many rival automakers presenting at CES scratching their heads, given the many issues they see facing Tesla. Of course, some of this may just be sour grapes, but other observations seem to reflect legitimate issues the automaker must address. (Full disclosure: I am short Tesla shares)

Based on informal discussions I had with many mid-to-high level executives at some of Tesla's large automotive rivals, here are the top questions they had:

No. 1 : Why are investors paying up for Tesla when its revenue growth has stalled?
Tesla’s most recently reported quarter, Q3 2019, was very poor from a growth perspective. Revenue were down 8% year-over-year, and profit was down 54%. For Q4 2019, which Tesla hasn’t reported yet, analysts expect revenue similar to last year’s $7.2 billion. Maybe there will be an improvement on the bottom line, or maybe not. The point is that Tesla used to be a growth company, and perhaps it will become one........

© The Street