Tesla has a better shot at developing self-driving features than it does at becoming a successful, competitive automaker, one analyst told reporters amid a flurry of reports criticizing CEO Elon Musk’s recent antics.
“Are we living in the real world? Tesla is just another one of those hope stocks,” Peter Toogood, chief investment officer at The Embark Group, told CNBC reporters Tuesday. Tesla stock nose-dived after Musk abandoned a short-lived plan to take the electric automaker private.
Tesla was knocked off-guard after Musk told his Twitter followers in an Aug. 7 post that he secured financial backing necessary to remove the company from the stock exchange His tweet followed a report suggesting Saudi Arabia became a major Tesla shareholder earlier in 2018 and prompted a full-blown Securities and Exchange Commission investigation into his claim.
Toogood did mention a possible way Tesla could recoup its image – develop autonomous driving features. “The only bit that has got hope is the autonomous driving,” he said, adding, “(but) the idea to compete on a platform basis with cars; it’s losing money every time it sells one.” (RELATED: Here’s How Musk’s Obsession With Tesla’s Critics Nearly Torpedoed His Company)
Tesla’s business model is only half the problem, according to Toodood. The lack of a network for servicing Tesla cars is also a huge barrier . Tesla customers around the world have complained about the company’s inability to provide quick, effective repair services, he noted.
“He’s losing money every time he sells a car today, and he can’t service them,” Toogood said. “Ask Norway, they can’t actually get the car serviced because there’s no network to service them. It’s just not real.”
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