The electric car market in the U.S. is a tough one. Consumers are interested in them, but not always willing to give up the ease of cars that run on petrol. This week an American manufacturer filed for bankruptcy and analysts say others are on the brink. But one company stands out, Tesla is a maker of sporty battery operated vehicles and is racing past its competitors. Not everyone thinks the road ahead will be smooth sailing for Tesla.
Blue Phoenix Inc., a fan of Tesla the company, is concerned about an $8bln valuation for Tesla the stock. Why?
- Time to charge still too long
- Need for more consistent sources of power post Sandy may make natural gas vehicles (NGV) a better long-term play
- Regional temperature concerns in winter
- Charging station infrastructure still needs to be developed
- Early adopters may already be reflected in sales figures
- New lease program is creative, maybe too creative
- Tesla Chairman/CEO role may need to broken up
- Tesla banking on Europe for growth may lead some to put capital in more stable areas for growth like consumer staples or even real estate
- Driverless cars are very intriguing but cybersecurity threat needs to be explored