Tesla has had a difficult year in 2024, with its shares down 34% so far. Despite this, one industry observer believes that Tesla is in a relatively good position compared to other players in the electric-vehicle space.
CFRA automotive analyst Garrett Nelson recently spoke to Fox Business, pointing out that Tesla’s rival Fisker is facing financial difficulties and major automakers are shifting their focus to hybrids due to slowing EV sales growth.
Nelson believes that this situation creates an opportunity for Tesla to increase its market share in the Western market in the coming years.
While Tesla is facing challenges in China, where competition is fierce, Nelson described Tesla as the best among its peers in the Western market.
Another indication of the challenges in the EV industry is Tesla’s rival Rivian delaying construction of a factory in Georgia.
Nelson noted that Tesla has significantly improved its financial position in recent years, with a strong balance sheet and a substantial cash reserve.
Musk’s behavior on Twitter has raised concerns among some investors, with CEO Ross Gerber expressing frustration with Musk’s leadership and public statements.
When asked about the impact of Musk’s behavior on Tesla’s stock decline, Nelson acknowledged that it plays a role but also pointed out that the stock had experienced significant growth the previous year.
Nelson’s firm has taken advantage of the stock decline to buy Tesla shares at a target price of $275.
This story was originally published on Fortune.com
