Published on : Sep 27, 2017
The strength of the stocks of Tesla Inc. is slowly losing its sheen as a result of growing competition in the emerging field of electric vehicles. Company’s shares remained in a correction on Tuesday, obstructed by the announcement from a billionaire British investor who has plans for his own electric vehicles. Tesla’s stock closed at a meager gain of 0.07 percent yesterday, which is substantially lower than 1.7 percent gain that it had registered in a volatile session. Having reached its peak on September 18, Tesla’s stocks remain 10 percent down in the recent days.
James Dyson, the inventor of the bagless vacuum cleaner, said at a London event that his company was in the process of building an electric car that will be launched by 2020. Dyson revealed that his company had set aside a sum of 2 billion pounds to develop their solid-state battery technology quite a while back. A team of 400 engineers has already worked on this secret project for more than two years, and it is ready to bear fruits. On the other hand, Swiss engineering group ABB has also dived into this emerging segment of the automotive sector, collaborating with Northvolt to build a lithium-ion battery factory in Sweden, which would be largest in Europe.
Tesla’s Niche Not So Exclusive Anymore
Adam Jones, analyst at Morgan Stanley, had estimated that about 300,000 Tesla electric vehicles will grace the roads in the U.S. and Europe by the end of 2017. However, he also argues that as more and more automotive companies launch similar products in the near future, the niche that Elon Musk crafted is in danger of losing its exclusivity.