Tesla could have an edge over rivals during COVID-19, expert says - Business Insider

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Tesla may have an edge over its rivals during the COVID-19 crisis, an industry watcher says

"Automakers, historically, do not carry huge valuations," because the auto industry is cyclical, capital-intensive, and requires high fixed costs, said Maryann Keller, the principal of the automotive consulting firm Maryann Keller and Associates. Tesla "cannot avoid the simple economics of the business."

But while a company can influence how investors feel about it, it cannot control its own stock price. And, amid the heated debate about Tesla's valuation, the company has performed better in the areas it can control, like manufacturing, which may be Tesla's largest and most visible area of improvement.

Tesla has long been renowned for its cutting-edge automotive technology, but it has struggled to make cars on schedule and without quality issues like large panel gaps and flawed paint.

 

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It 100% will. It's supply chain isn't nearly as fragmented for 1 - and for 2 - you've got the market about to be flodded w/ unsold ice inventory no one wants.

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