News Contact Us

Investors back Tesla over Toyota & GM to lead tech shift in the sector

Author : Pankaj Singh | Published Date : 2020-04-24 

Before the emergence of coronavirus, the automotive industry had been undergoing a transition from fuel-based vehicles to electric vehicles. To that end, investors are more likely to invest in Tesla rather than industry giants like, Toyota and GM to drive the automotive industry’s shift towards autonomous and electric vehicles.

Elon Musk’s Tesla has created a brand name and is currently at the top in terms of innovation and manufacturing of electric vehicles while global automotive giant Toyota has not entered the electric vehicle field with a serious contender of its own yet.  

As per recent stock market numbers, Tesla’s stock price was up about 80% year-to-date. Meanwhile, GM and Ford were down at 40% and 45% respectively.

Analysts and investors are currently working to understand industry trends with several projecting that Tesla is likely to emerge out of the current global crisis as an automaker that is much stronger than other industry players.

Adam Jonas, Morgan Stanley auto analyst stated that in a year that is shaping up as a massively challenging period for the global automotive market, several investors are comparing the attractiveness and resiliency of traditional auto OEMs against Tesla.

Jonas and his team predict that Tesla’s free cash flow position would be greater than the rest of the auto companies this year. On the basis discussions with investors, most anticipate Tesla to burn about $1 billion or more of free cash flow in 2020 and still see near FY unit growth between 5% - 10% or more in terms of volume.  

The investors are divided on the possibility of the automotive market benefiting from the ongoing transition to autonomous and electric vehicles, but there is consensus on which company is in a much better position and is likely to lead this transition.

As per the conducted survey, 54% of the investors would back Tesla to lead this transition rather than Toyota or GM.

Source credit: https://electrek.co/2020/04/22/tesla-tsla-gm-toyota-lead-auto-industry/


About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Kotak Bank gears up to launch a major share sale worth $2 billion

Published Date: 2020-05-27         Author: Pankaj Singh

Renowned financial institution Kotak Mahindra Bank has apparently made it to the headlines for its announcement of planning to launch a share sale to institutional investors. Reliable reports affirm that this share sale has been targeted toward raising as much as $2 billion in multiple tranches, in ... Read More

Canadian Competition Bureau fines Facebook $9 million for false claims

Published Date: 2020-05-22         Author: Pankaj Singh

Social media giant, Facebook Inc., has been witnessing a never-ending deluge of privacy and security related scandals over the past few years. Recently, the company made headlines when Canada’s Competition Bureau has fined the social media giant USD 9 million for making misleading or false cla... Read More

Sika starts manufacturing safety masks after hand sanitizers

Published Date: 2020-05-20         Author: Pankaj Singh

  Sika has started producing safety masks for its employees and customers These face masks have polyester-based protective layers 50,000 masks have been produced till date and 165,000 more have been pre-ordered Swiss chemical specialty major Sika has reportedly commenced the prod... Read More

© 2020 Fractovia. All Rights Reserved