Tesla is really trying to pivot from being only a car maker: analyst
Tesla disappointed investors in its latest earnings report by missing expectations on revenue and sales, but one analyst believes the car company has its eye on larger things.
Tom Narayan, global auto analyst at RBC Capital Markets, told BNN Bloomberg in a television interview on Thursday that Tesla could shift its focus to car parts.
“My theory is, I think Tesla is really trying to pivot from being a car maker only to actually becoming a supplier to other car companies, and that means making less cars, and I think that was the plan all along,” he said.
Narayan pointed to the company’s focus on developing state-of-the-art self-driving software, and expanding its charging infrastructure with other car companies, as two business verticals that Tesla is very focused on.
“Making cars is not an easy business, and now we’re seeing weaning demand for some of their products,” he said.
“Instead of making a low-cost Model 2 that’s not as profitable, why not just sell products to other car companies — and then get FSD (full self-driving capability) into these car companies just directly?” he added.
Tom Narayan, global auto analyst at RBC Capital Markets, told BNN Bloomberg in a television interview on Thursday that Tesla could shift its focus to car parts.
“My theory is, I think Tesla is really trying to pivot from being a car maker only to actually becoming a supplier to other car companies, and that means making less cars, and I think that was the plan all along,” he said.
Narayan pointed to the company’s focus on developing state-of-the-art self-driving software, and expanding its charging infrastructure with other car companies, as two business verticals that Tesla is very focused on.
“Making cars is not an easy business, and now we’re seeing weaning demand for some of their products,” he said.
“Instead of making a low-cost Model 2 that’s not as profitable, why not just sell products to other car companies — and then get FSD (full self-driving capability) into these car companies just directly?” he added.
