In addition to potential competition from Lucid, an electric vehicle start-up that will receive more than $ 1 billion from Saudi Arabia's sovereign wealth fund, Tesla is still trying to repair the damage caused by the injuries inflicted. by CEO Elon Musk.
Why it's important: Tesla is in one of the toughest segments of its 15 years of existence, as it seeks to display consistent and well-executed model 3 production increases and realize the promise of Musk's impending profitability.
Driving the news: Just hours after the PIF's announcement of his investment in Lucid, it was reported that a British diver playing a role in rescuing the Thai boys' football team was suing Musk for his unfounded accusations of pedophilia.
Threat level: The lawsuit highlights how Musk's erratic behavior is a distraction at a critical moment. And this is aggravated by the lingering fallout from the private fiasco, which has conducted a SEC investigation into Musk's claim that he has "obtained funds".
L & # 39; plot: Through the Washington Post, "the lawsuit could amplify Tesla's calls to install a high-ranking cadre or co-captain capable of mastering Musk's more self-destructive instincts."
The big picture: In terms of competition, do not forget that Tesla is by far the largest player in the US market for electric vehicles and has strong growth potential in Europe.
- Nevertheless, Lucid's news shows how the EV sector is becoming increasingly crowded as startups and former car manufacturers, like Audi, plan new models at different prices.
A couple of remarkable pieces about Tesla's competitive position:
- In Bloomberg's opinion section, Liam Denning writes, "Lucid's funding is a reminder that Tesla has a target on his back." He notes that despite Tesla's powerful US position, "operational snafus means that he does not take advantage of the current window of opportunity as he was supposed to do.
- Yes, but: By MarketWatch: "Tesla Inc. is not facing any competition at the moment, and when it does, Bernstein analysts will say it on Monday.What should be worrying Tesla investors? Execution rather than competition , Bernstein's analysts said. "
Go further: Tesla's potential competitor, Lucid Motors, makes his choice.
