Tesla is at risk of losing its market dominance: analyst

Tesla $Tesla(TSLA.US)$ bulls shouldn't get too comfy with the company's market dominance continuing unabated, warns Guggenheim analyst Ali Faghri.

"Our balanced view [on Tesla] is based on: 1) a favorable near-term setup — with demand outpacing supply, we see visibility to volume upside in 2022 and 2023 as new factories in Austin and Berlin ramp; 2) competitive advantage over all original equipment manufacturers today, including a high degree of vertical integration, a software defined vehicle approach, a dedicated charging network, and greater battery capacity; 3) increasing competition, from both legacy players and new EV-only entrants, and as a result, we see risk of moderating global EV share for Tesla from current lofty levels (especially post 2023 as competitors scale capacity)," explained Faghri in a note to clients on Monday.

Faghri initiated coverage on Tesla at a Neutral rating with a $925 price target.

Tesla shares currently trade at $902, down 20% over the past month as CEO Elon Musk has sold large chunks of stock to satisfy tax obligations. Musk has unloaded nearly $12 billion worth of Tesla's stock since Nov. 8.

Part of the content is taken from Yahoo
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