[ad_1]
Count Tesla Inc. TSLA struggling with a sinking stock price, the electric car maker just got some friendly advice from a former executive of a rival automaker.
What happened: Tesla is first and foremost a battery and technology company that happens to make cars, which is a huge advantage, historically Ford Motor Co. F CEO Mark Fields said in an interview with CNBC’s Fast Money on Tuesday.
See also: Best Electric Cars
Despite Tesla having a large first-mover advantage, it is currently facing many challenges, especially on the demand side, he said. The problems with China reflect COVID-19 challenge and the demand per se, he added.
In the US, since Tesla once had 100% market share, it can only go down, Fields said. The erosion of market share is largely due to the lack of a product to compete in the sub-$50,000 category and will be a challenge for Tesla, Fields added.
“That’s where the growth is going forward as we move from early adopters to mass adoption,” said the former CEO.
Fields also took a look at the CEO situation. There was widespread criticism from even Tesla CEO supporters Elon Musk‘s focus on Twitter has diluted his attention to his EV venture.
According to Fields, the auto industry is a 24/7 job and requires constant attention to teams around the world and consideration of ways to increase productivity, product quality and sales. Because of Tesla’s size, not every issue comes to the boss, but if it does, it raises the question of who makes decisions for the company if the leader isn’t there, he added.
Why It Matters: Shares of Tesla are down about 54.3% for the year-to-date, significantly underperforming the broader market. The S&P 500 Indexwhich is considered a proxy for the broader market, fell a more modest 15.7% for the same timeframe.
From Tesla’s all-time high of $414.50 it hit on Nov. 4, the stock lost a whopping 61%.
Tesla bull and Future Fund co-founder Gary Black also expressed a similar opinion, blaming the stock’s weakness on the lack of sub $30,000 compact cars in China, among other things.
Price Action: Tesla closed Tuesday’s session down 4.09%, at $160.95, according to Benzinga Pro data.
Read Next: Tesla CEO Elon Musk Loses World’s Richest Crown To European Luxury Goods Tycoon
[ad_2]
Source link
