It's looking less likely that Tesla would find a buyer, according to Bernstein.
Bernstein's Max Warburton writes that while there may be some tepid interest in Tesla's assets, it's unlikely a European carmaker would buy the company.
Tesla CEO Elon Musk attends the Tesla Shanghai Gigafactory groundbreaking ceremony in Shanghai, China, January 7, 2019.will find a buyer to save it from its financial struggles and offer it a source of new funding, Bernstein told clients on Monday. "What assets are attractive? Tesla no longer has genuinely differentiated tech. The production plant is sub-par. The Gigafactory is probably not essential ," Warburton wrote. "The brand still has value, albeit one that is declining fast. The Supercharger network also has some value. Perhaps these get picked up. But at what price?"Tesla used about $950 million of cash in the first quarter , prompting renewed concerns over its long-term financial health.
Even though Warburton isn't Bernstein's Tesla analyst, he does cover a number of auto companies in Europe, which could be in for a pop if Tesla fails. The Palo Alto automaker has put "huge pressure" on the valuations of traditional equipment manufacturers in Europe as Tesla's initial success suggested that barrier to entry in the the electric vehicle market weren't as onerous as once thought.
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