BusinessPostCorner.com
No Result
View All Result
Friday, June 20, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Tesla to gain as EV startups falter, auto giants embrace hybrid

March 17, 2024
in Business
Reading Time: 2 mins read
A A
0
Tesla to gain as EV startups falter, auto giants embrace hybrid
ShareShareShareShareShare

Tesla has had a rough 2024, with its shares down 34% year to date. But the electric-vehicle space in general is having a difficult time, and, relatively speaking, Elon Musk’s carmaker is sitting pretty, believes one industry observer. 

CFRA automotive analyst Garrett Nelson, speaking to Fox Business this week, noted that Tesla rival Fisker recently hired restructuring advisors amid talk of a possible bankruptcy. And major automakers, he added, are turning their focus more to hybrids—which give owners greater fuel efficiency without the range anxiety—as EV sales growth slows down. 

“That really opens up a lane for Tesla to grow their market share even more in the coming years,” Nelson said. 

While Musk’s carmaker faces challenges in China, where EV competition is intense, Nelson said, “we kind of view Tesla as the best house on a bad block in the Western market.” 

Another sign of that “bad block” was Tesla rival Rivian—amid doubts about its long-term prospects—recently announcing it would delay construction of a factory in Georgia and save money by instead building its upcoming new models at its existing plant in Illinois.

“There’s a lot of distress taking place in the EV industry,” Nelson said.

Of course, Tesla had its own existential struggles as an EV startup not so long ago. 

But Tesla today, Nelson said, “is a lot different than the company of three or four years ago. The company has an investment-grade balance sheet. They’re sitting on more than $29 billon of cash, with hardly any debt.”

One thing that’s changed since then is Musk buying Twitter, now X, and going on to voice or amplify sometimes controversial positions on the platform.

On Thursday, Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, voiced frustration with Musk’s leadership and public behavior while speaking to Yahoo Finance.  

“The original story that I think most investors bought into with Tesla didn’t really include Elon and Twitter…For a long time, we all hoped that it really wouldn’t affect Tesla and the demand for its products,” Gerber said. “We all know that that has now happened. The demand for Tesla products is obviously lower. They’ve had to discount and do many things that hurt margins and returns and, ultimately, profits for Tesla.”

As for Nelson, when asked if Musk’s “erratic and compulsive behavior” had played a role in the stock’s decline, he answered, “Of course it does. The stock price reflects all available information regarding the company, including Musk’s behavior.” 

But, he argued, the pullback in Tesla share was overdue: “If you look, last year Tesla shares more than doubled, and so for the stock to have a 30% pullback or so is not all that surprising.” 

His firm has bought has bought the dip, he said, and he sees shares going 68% higher than today’s level. 

Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Hertz’s EV and CEO about-face latest saga twist

Next Post

Trump: 100% tariff for cars made in Mexico by Chinese firms

Next Post
Trump: 100% tariff for cars made in Mexico by Chinese firms

Trump: 100% tariff for cars made in Mexico by Chinese firms

Britain’s MI6 spy agency promotes ‘Q’ to be first female head 

Britain’s MI6 spy agency promotes ‘Q’ to be first female head 

June 15, 2025
Charles Hoskinson Eyes 0M Treasury Shift – Will Stablecoins Rescue Cardano’s TVL?

Charles Hoskinson Eyes $100M Treasury Shift – Will Stablecoins Rescue Cardano’s TVL?

June 13, 2025
Tax savings for business owners hiring kids

Tax savings for business owners hiring kids

June 16, 2025
Large protests across US against Donald Trump’s ‘authoritarian’ policies

Large protests across US against Donald Trump’s ‘authoritarian’ policies

June 15, 2025
GameStop Upsizes Convertible Note Offering to .25B — How Could BTC Benefit?

GameStop Upsizes Convertible Note Offering to $2.25B — How Could BTC Benefit?

June 14, 2025
Payroll clarity is an HR must. Plus, news from ADP, Gartner, more

Payroll clarity is an HR must. Plus, news from ADP, Gartner, more

June 18, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

Shiba Inu Price Prediction: Down 15% With Critical Support in Sight – Time to Panic or Accumulate?

Shiba Inu Price Prediction: Down 15% With Critical Support in Sight – Time to Panic or Accumulate?

June 19, 2025
Labour whip resigns over planned UK welfare cuts

Labour whip resigns over planned UK welfare cuts

June 19, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!