Tesla is a strong company with great prospects. It is a leader among all EV automakers, and the crisis due to COVID-19 will only strengthen its superiority.
Today, Ross Gerber, president and CEO of Gerber Kawasaki, joined Benzinga's PreMarket Prep program and discussed how Tesla is benefiting from the COVID-19 outbreak.
Gerber Kawasaki taking its name from its two founders, Ross Gerber and Danilo Kawasaki, Gerber Kawasaki Wealth & Investment Management is an independent advisory with offices in Santa Monica and Los Angeles. The firm has over $1 billion in assets under management. The staff of 26 includes 18 advisors who may also be broker representatives and/or insurance agents. Gerber is often commenting on the markets or being quoted. He’s also a contributing writer to Forbes.com.
The crisis has slowed down Tesla’s electric competitors, such as Rivian, he said. “Everybody’s stuck on financing, and who wants to throw hundreds of millions into a speculative venture now?” says Gerber.
Many companies are now fighting for solvency, because people do not show an active interest in the products they produce. In this situation, even such giants as Ford and GM found themselves. “If you go into the bond market today, there’s a lot of bonds for Ford and GM you can buy today. A lot of people don’t want them,” Gerber said.
He believes that Tesla's only real competition in the electric car market is in China. But, for example, Nio is “garbage,” while Geely and BYD are well-managed companies.
Gerber said China and Europe should bring Tesla from the sale of 380,000 cars in 2019 to 1 million cars in two or three years. We can all see how Tesla is gaining popularity around the world, so this forecast looks very realistic.
The California automaker is a leader among all EV automakers and, as we can see, it is successful even despite the global crisis in connection with COVID-19. In the first quarter of 2020, Tesla was able to deliver much more vehicles than analysts predicted, which undoubtedly indicates the strength of the company.