Tesla (Nasdaq:TSLA) will be releasing earnings results soon. Ponder this Bear Case Scenario.
Tesla has captured consumer imagination with its electric car. However other manufacturers are coming out with their offerings. The consumer is certainly looking for green solutions. Early models have not done as well as expected. This is going to be a knife fight.
The infrastructure for electric recharging is still woefully inadequate. The Tesla backed Supercharger facilities are offering free recharge. How do you cover the cost over the long run? Short run great promotional coup.
Many power companies do not have the necessary infrastructure to support at night recharging at home. They simply cannot handle the increase in load. Sounds like a great business opportunity for the power business but it will take time to roll out the upgraded infrastructure. The evening night time recharge will wreck havoc with environmentalist mandated off peak pricing for electricity. The Sierra Club will have to change is way of thinking.
China beckons because they need clean running cars. China is a difficult market and will soon have knock off models coming off their own factories.