Tesla Motors Inc (NASDAQ:TSLA) CEO, Elon Musk, believes that driving of cars may soon be abolished especially on the development of semi-autonomous cars that can be controlled by robots. Musk simple explanation is that, computers will be able to do a much better job, to a point where humans would be seen as a liability on the roads. CNBC’s Contributor, Steve Grasso, agrees with the executive but affirms the sentiments will not in any way save the stock which is down by 30% from its all-time high.
Tesla Motors Inc (NASDAQ:TSLA) is working on its own self-driving car having already introduced an autopilot mode in Model S for doing things like changing speed, braking and keeping the car in the correct lane. It used to be the only cool electric car manufacturer but with the entry of more players in the space, its market share has come under immense pressure as investors sentiments also change.
“There is too much competition; they used to be the only cool car that was electric. Now everyone […] BMW has it Ford Motor Company (NYSE:F) has it General Motors Company (NYSE:GM) has it, and everyone is coming out with more. I do believe autonomous cars are going to be, going into the future, but not enough to save Tesla right now,” said Mr. Grasso.
Guy Adami believes the downward trend could be in for the long haul with the stock likely to test levels of between $175 and $180 a share; last seen in May of last year.
“If you just look at the way it has traded since September, you have a series of lower highs and lower lows, and I think that continues,” said Mr. Adami.
The giant electric company is also facing immense challenges on the sale of its current models especially in its key market of China where the company failed to meet sales target last quarter. Tesla Motors Inc (NASDAQ:TSLA) has resorted to layoffs in the country as well as hiring new executives for the area that are expected to rejuvenate sales this year. Orders are not coming as the company would have expected, another point of concern going forward.
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