Stable management?
In recent years a number of senior people have left the company. Elon Musk is a great visionary but the company needs a strong team. Musk has also repeatedly been in trouble with the regulators, so the future prospects are unclear in terms of stability and good execution.
Is its "first mover" advantage enough for Tesla?
Tesla currently has a significant share in the global electric car market. But there are competitors: BMW, GM, Toyota, and others. These are well-established companies. Some people believe Tesla now has more efficient manufacturing and distribution than other major car makers; however, well-funded competitors may become more aggressive.
Will there be sufficient global demand?
Tax credit subsidies for Tesla cars in the US have ended. The situation in China is also uncertain with the threat of a trade war and the ongoing coronavirus. Thus demand in China, Tesla’s expected biggest market, may significantly weaken.
Is more capital needed?
Is two billion USD of new stock really enough for the company to carry out its very aggressive expansion plans? These plans cover both new product lines and more manufacturing capacity, according to an article on the Wharton business school website.
How much is Tesla worth in terms of valuation?
Tesla’s stock is being traded at a significant premium when compared to stock of Facebook, Amazon, Netflix or Google. Netflix is trading at similar multiple levels of EBITDA ratios and has similar expected EBITDA growth rates. However, it also has significantly higher expected margins than Tesla.
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