Since raising $2bn earlier this month, the shares have fallen by 16% as there are real concerns about both demand for Tesla vehicles this year and the company’s ability to make money from those it does sell. This, combined with the OEMs finally getting to grips with making nice looking, competitive electric vehicles puts Tesla in a very difficult position. Consequently, Tesla needs to stay afloat selling metal boxes on wheels for at least another 9 years. A self-owned autonomous vehicle will still have all the advantages of a robotaxi (drives itself, parking etc.) Hence, there is no way that Tesla should trade at a premium to the OEMs and consequently, there is still a very long way to fall.

Source: Forbes May 21, 2019 07:52 UTC