Chowdhry: Tesla's Mobile Container Store Is 'Phenomenal' And 'Remarkable'
Tesla Motors Inc (NASDAQ: TSLA) will announce a new "mobile container store" on Friday that will raise awareness and increase exposure for the electric car manufacturer.
The container will make its first stop in Santa Barbara and will remain in the city for a month before moving onto another location.
Global Equities Research analyst Trip Chowdhry was very excited about this news. He said there are many individuals who buy a Tesla sight unseen. The first time they get to test drive the vehicle is the day it arrives at their doorstep.
"So if you look [how Tesla is] traveling [with a] mobile shop or container, it is phenomenal," Chowdhry told Benzinga. "Why? It takes the car to the doorstep of the community. Not only that [but] the people who are explaining the features of the car are the people who understand it very well. They are only singularly focused on Tesla. I think that's a remarkable way of going to the market."
Chowdhry referred to this as a "go to market" strategy that is "remarkable."
"It lets people experience the product more closely and it also brings the cars to the doorstep of a community in the places where they are not allowed or restricted by the number of stores [allowed]," he explained. "I think it is very positive. I think it again shows that Tesla does everything in a very unorthodox matter. They are inventive in almost everything. When was the last time you heard about a container coming to the community to show off a car?"
Chowdhry said that when consumers think about innovation in automobiles, they think about Tesla.
"They don't think about BMW anymore," he said. "They don't think about GM anymore. They don't think about Porsche anymore. When you think about innovation in the energy consumption and energy storage, again, Tesla comes out on top in terms of brand awareness."
Chowdhry likes the possibility that Tesla can increase its reach and sell cars in distant locations.
"Secondly, people can try them," he added. "I think it is quite positive because of the hurdles that numerous regulation agencies have put in their path. Can you imagine, the most innovative car, made in USA, can't sell in USA? Imagine that. How stupid is that regulation? Imagine, the most innovative car is a USA car and you can't sell it in Texas? Why?"
Chowdhry said that Texas has made no attempt to keep Chinese-made products out of the state.
"You can sell made-in-China anything in America, but you can't sell made-in-America in America?" he questioned. "That pretty much tells you the regulatory environment and political environment in USA is pretty much screwed."
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Latest Ratings for TSLA
|Oct 2016||Goldman Sachs||Maintains||Neutral|
|Oct 2016||Goldman Sachs||Downgrades||Buy||Neutral|
|Sep 2016||Cowen & Co.||Initiates Coverage on||Underperform|
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