Tesla Motors Inc. (NASDAQ:TSLA) best days are behind it according to CNBC’s, Timothy Seymour, who maintains that the downward trend could be in, for a long haul. The analyst is basing his arguments on the fact that competition is poised to play a big role going forward; a problem that should be compounded with a further decline in oil prices.
“A stock that touched $286 on September 4th got down to $195 during the lows and I think it is a stock that probably goes to $180. I am not saying that is the place to buy it but. I think it goes there and if you look at these companies there are things that bother me and I have said over and over, competition,” said Mr. Seymour.
Seymour expects the unveiling of BMW I3 to offer the biggest threat to Tesla Motors Inc. (NASDAQ:TSLA)’s market dominance heading into 2015. The analyst also remains skeptical about the giant electric company prospects in China in the wake of its head in the country resigning. 2015 is poised to be another turbulent year for Tesla especially with more players entering the electric vehicle space.
Seymour made the sentiments in the wake of CEO, Elon Musk, tweeting that the company was working on a charge. That automatically extends from the wall and plugs itself on a car like a solid metal snake for charging. The new design is aimed at averting the hassles that owners usually undergo of having to plug their car for charging once they get home.
Tesla Motors Inc. (NASDAQ:TSLA) has for quite some time admitted that it is not able to meet production demand, a problem that might come back to haunt it with the entry of more players in the space. CNBC’s contributor Jim, on the other hand, believes Musk and Jeff Bezos share the same desire of building great companies without necessarily paying attention to shareholder’s returns.
“I wouldn’t be surprised if Tesla Motors Inc. (NASDAQ:TSLA) were in some way to merge with SpaceX operation or much like Amazon.com, Inc. (NASDAQ:AMZN). Just get into a whole wealth of other projects. That has made for a great business but frankly a lousy stock. So I would be away from it too,” said Mr. Seymour.
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