Post-Corona advantage: Tesla could emerge as a winner from the corona crisis | message

The corona crisis has put numerous industries under massive pressure. The car industry is also struggling thanks to temporary plant closings and production stoppages and is likely to continue to suffer after the corona restrictions have ended. The prospects for the electric car manufacturer Tesla may be better than for many traditional car manufacturers.

Tesla breathes air

As a result, investors have recently shown themselves to be significantly more optimistic with regard to Tesla’s price performance and have given the share a strong boost several days in a row. The clear recovery course at Tesla was triggered by positive delivery figures for the past quarter. Around 88,400 cars were delivered to Tesla customers in the three months to the end of March, significantly exceeding analysts’ expectations.

And this trend could continue at the latest when the restrictions that many countries had imposed as a result of the Covid 19 pandemic are relaxed again and car manufacturers can start up production again at their plants. Then the priority of the traditional corporations should not initially be to push their electric car models into the market, instead it will probably first be a matter of boosting the traditional business again and largely reducing expenditure.

Against this background, Tesla’s competitive advantage could further increase, Tesla should have the advantages on its side in the race for the electric car market. Analysts also see it this way: Adam Jonas and his team of Morgan Stanley analysts recently said in a message to customers accordingly and emphasized that Tesla would probably be able to “expand its competitive advantage in electrification from a consumer perspective.” The experts pointed out that traditional corporations like GM will probably first put their energy and money into projects that promise quick profits instead of implementing plans that are long-term and whose impact on sales is unclear.

Vertical organization brings benefits to supply chain problems

In addition to the focus on electric vehicles and a competitive advantage, Tesla has another advantage on its side: The company is not as dependent on suppliers as the competition. While VW & Co. depend on the corona restrictions in the supplier countries to be lifted again so that a smooth supply chain can function, the company produces from Elon Musk many parts for his vehicles in-house. Sandy Munro from Munro & Associates also believes Tesla has an advantage in this regard. If you compare the competitors, there is a strong vertical integration at Tesla, so the car manufacturer produces many components himself.

One cannot simply switch off the supply chain and expect that it will be ready for action when the automobile factories reopen, according to the auto expert. You can only act as quickly as the slowest supplier, and “you are only as good as the worst supplier”, he emphasized in a recent interview published on YouTube.

Taking this into account, Tesla could actually emerge as a winner from the Corona crisis. If production starts up again, the electric car manufacturer could be back in business faster and more flexibly and should also be able to keep its lead in Electric car-Expand segment. Reason enough for investors to continue shopping at Tesla.

Editorial office finanzen.net

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