Mark Fields, former head of Ford (NYSE: F), considers, that the most popular manufacturer of electric cars Tesla (NASDAQ: TSLA) trying to cope with the consequences of their own innovations. Elon Musk made everyone take the electric car industry seriously. Now his company is facing serious competition in key markets.”, Fields said.
Another former manager criticized Tesla's revenue structure: “Sales of regulatory loans exceed the company's net profit. In the future, when this source of income runs out, Tesla will have trouble making money.
Regulatory Loans - Points, which the government charges automakers for the development and sale of electric cars. So it encourages companies to produce cars with low carbon emissions.
Every car manufacturer must earn a certain number of points annually. If it fails, then the company can buy points from another manufacturer. Tesla only makes electric vehicles, so she sells her extra credits to the rest. Over time, when the share of electric cars in the lines of auto companies will become higher, Tesla can't make money off of this.. For this reason, managing director Michael Bury, protagonist of the movie "The Big Short", made a bet on the fall of Tesla shares.
To increase profits, Elon Musk's company should increase car sales, but Credit Suisse analysts note only a drop in Tesla's share in key US markets, Europe and China. Fields explained this to, that automobile giants Ford, General Motors and Volkswagen occupy a growing share of the electric car market. At the end of May, Ford announced, what to 2030 year sales of electric vehicles will be 40% of the company's total revenue.
Yesterday, 3 June, Ford shares rose by 7,2%, to 16 $, after the presentation of the new compact pickup Maverick. Since the beginning of the year, the company's securities have added 88%. Tesla shares fell by 5,3%. There were rumors, that the company's sales in China for the month decreased by almost 50%: with 18 thousand cars in April to 9,8 thousands in May. Tesla shares are currently trading at 22% cheaper, than at the beginning of the year.
