The Tesla Short Circuits
Many are making calls that Tesla has nothing but a bubble ahead:
Fortune 's Shawn Tully has a question for prospective Tesla investors: "Over the next several years, what's the valuation Tesla must achieve to reward them for shouldering the heavy risk of buying its shares right now?" He comes to the conclusion that the necessary volumes are impossible for Tesla, "given the current size and projected growth of the industry…It's not that Tesla can't be successful. The killer is that its bubble valuation mandates future performance that simply looks unachievable." (Fortune newsletter)
And in the automobile sector, a gap exists between the production of fossil-fuel cars and EVs:
New research shows that European auto firms will find it more expensive to build electric cars than fossil-fuel cars for at least the next decade. It seems that, by 2030, there will still be a 9% gap in production costs that threatens the profit margins of companies such as Volkswagen and PSA.