The recent surge in Tesla Inc. (NASDAQ:TSLA) shares has not deterred Mark Hawtin, investment director at GAM Investments, from voicing concerns about the company’s fundamentals and potential demand problems.
What Happened: Despite the positive market response, Hawtin remains skeptical about Tesla’s fundamentals, particularly in light of increasing competition in the EV market. He noted that other automakers are experiencing strong EV sales growth, even as the global auto market is in a downturn.
"The bottom line here is the fundamentals are not good. There's a huge plethora of offerings in the market now for EVs, and Tesla is lagging behind," Hawtin said, CNBC reported.
Hawtin also highlighted potential demand issues stemming from Tesla’s aggressive price cuts, which have led to a drop in used car values and could result in higher leasing costs.
This comes in the wake of Tesla’s earnings release, which saw the company’s stock rise by 24%, partially driven by CEO Elon Musk‘s optimism about ...