Despite Toogood’s bearish thoughts on Tesla’s auto manufacturing abilities, the analyst said there was “hope” for the firm in its self-driving technology.
“The only bit that has got hope is the autonomous driving,” Toogood said, adding, “(but) the idea to compete on a platform basis with cars; it’s losing money every time it sells one.”
The investment manager said that the lack of a network for servicing Tesla cars was also a point of concern. Some international customers, for instance, have bemoaned repair waiting times, as parts need to be shipped from overseas.
“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.”
Norway is considered an electric vehicle-friendly country due to subsidies aimed at improving affordability and an overall target of going all-electric by 2025.
Tesla’s stock price target was cut by a number of brokers on Monday and Tuesday, including CFRA, Independent Research and Canaccord Genuity.
Musk is the largest investor in Tesla, owning almost a fifth of the company’s shares. Market observers have expressed worries over his leadership, citing the executive’s presence on Twitter, involvement in public issues and general disdain for the media as causes for concern.
Be the first to comment