Tesla Motors Inc (TSLA): How Much Does Fisker’s Financial Position Matter?

Had Fisker got as far as mass producing the Fisker Atlantic, it may have begun to threaten some of the market share of Volkswagen’s Audi and the $50,000 plus segment targeted by the company. But, like Tesla Motors Inc (NASDAQ:TSLA), Fisker would take a considerable amount of time to ramp up production and the Atlantic would still target only part of the segment. Thus, I believe that Audi would not have seen Fisker as a major threat had it succeeded, and its failure to scale Atlantic production does not create a major benefit for Audi.

Opportunity from failure

As a result of Fisker’s inability to pose a major threat to the automotive industry, established players will see less upstart competitors threatening their market share. However, the biggest beneficiary of Fisker’s production halt may be Tesla Motors since the two electric automakers would have been competing for the high-end auto market and in the electric segment of that market.

As a Tesla Motors Inc (NASDAQ:TSLA) shareholder, I hope Tesla can continue its current winning streak and capitalize on offering the only high-end all electric car currently in mass production. For the rest of the auto industry, less competition is better for their financial health, but they may need to watch out for a growing Tesla in the coming years as it fills the void left by Fisker.

The article How Much Does Fisker’s Financial Position Matter? originally appeared on Fool.com and is written by Alexander MacLennan.

Alexander MacLennan owns shares of Tesla Motors . The Motley Fool recommends Tesla Motors . The Motley Fool owns shares of Tesla Motors. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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