Emerging Tech

Tesla’s competitiveness

Tesla will report earning tomorrow after market close. Good productions/sales and improved cash condition will help to reduce negativities about the company. Below is from a Barron article which outlines four positive points about Tesla.

“We believe Tesla will become a leading player in the more than $2 trillion global automotive industry and the recent negative concerns around the company create a great buying opportunity at the current share price. In our view, this 11-year-old American auto maker will likely become the largest auto maker globally by 2035 as Tesla has 1) an outstanding disruptive product portfolio that will drive consumer demand in the near-term, 2) a strong brand as an electric car manufacturer that will drive long-term revenue growth, 3) minimal competitive risk thanks to other disrupted legacy competitors’ inability to adapt from internal combustion engine (ICE) vehicles to electric vehicles, and 4) a competitive cost structure through vertical integration and little need for marketing, which will help Tesla reach above-industry-average margins.”