Competitor Bankruptcy Shows Genius Behind Tesla's (TSLA) Operations, Strategy
Tweet
Share
E-mailGet Alerts TSLA Hot Sheet
Join SI Premium – FREE
Tesla Motors (Nasdaq: TSLA) "competitor" Miles Electric Vehicles has filed for bankruptcy. The company cited difficulty in gaining a broader market acceptance of battery-powered vehicles.
Here is a photo of one of their cars, the MILES ZX50S-AD.
It's hard to say Miles was competition for Tesla, but the company was started just one year following Tesla's formation.
Miles offered a series of low-speed, all-battery vehicles designed for off-highway use. The company listed assets of $10 million to $50 million and liabilities of $50 million to $100 million.
Consumers have been relatively slow to adopt electric vehicles given higher initial costs and concerns over battery reliability and range.
The most formidable and promising competition Tesla has seen was Fisker Automotive, which recently filed for bankruptcy. Whether or not Tesla's success will give Fisker a second chance at life is undetermined, though founder Henrik Fisker is working to regain control of the company.
But, the news does play to the genius and determination behind Tesla CEO Elon Musk. He's doubled his company's stock price this year alone and has been very active in pushing for the success of Tesla. When the price of Tesla's vehicles gets into the $30,000 to $45,000 range (the Model S currently starts for over $60,000) and an SUV-type vehicle becomes available, there's no telling how high the stock might go.
Into the open, Tesla is indicated lower Tuesday.
Here is a photo of one of their cars, the MILES ZX50S-AD.
It's hard to say Miles was competition for Tesla, but the company was started just one year following Tesla's formation.
Miles offered a series of low-speed, all-battery vehicles designed for off-highway use. The company listed assets of $10 million to $50 million and liabilities of $50 million to $100 million.
Consumers have been relatively slow to adopt electric vehicles given higher initial costs and concerns over battery reliability and range.
The most formidable and promising competition Tesla has seen was Fisker Automotive, which recently filed for bankruptcy. Whether or not Tesla's success will give Fisker a second chance at life is undetermined, though founder Henrik Fisker is working to regain control of the company.
But, the news does play to the genius and determination behind Tesla CEO Elon Musk. He's doubled his company's stock price this year alone and has been very active in pushing for the success of Tesla. When the price of Tesla's vehicles gets into the $30,000 to $45,000 range (the Model S currently starts for over $60,000) and an SUV-type vehicle becomes available, there's no telling how high the stock might go.
Into the open, Tesla is indicated lower Tuesday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: Netflix, Super Micro fall; Paramount Global gains
- Tesla cuts EV prices again as stock continues to slide
- Tesla to recall 3,878 Cybertrucks over faulty accelerator pedal, NHTSA says
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Bankruptcy, TeslaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
