Market Overview

The 'Tesla Killer' Is In Shambles

The 'Tesla Killer' Is In Shambles

Faraday Future, the electric car startup that was dubbed as being the "Tesla Motors Inc (NASDAQ: TSLA) Killer," isn't all it seems to be.

Faraday Future revealed its FF91 electric vehicle in early January, which can beat Tesla's Model S sedan set to "Ludicrous Mode" and described the car as being "the first of a new species" and "the car that may not be a car at all," among other attractive buzzwords.

Trip Chowdhry of Global Equities Research was among the first analysts to declare Faraday Future's new car as being "Dead-On-Departure" for several reasons, including Faraday Future's "extremely narrow and myopic view."

Chowdhry now has some allies.

Not So Fast, Faraday Future...

A Business Insider report characterized Faraday Future as being "in shambles." The publication interviewed eight people with knowledge of Faraday Future's business — and its findings are encouraging for Tesla's shareholders who were worried of a large-scale competitor coming to the market and steal its thunder. In fact, shares of Tesla were trading higher by more than 4 percent ahead of Thursday's market open.

Business Insider noted that the people it spoke with described Faraday Future as being in "shambles" as more than six senior executives left the company since last spring, including its global CEO who left the company right before the Consumer Electronics Show.

Moreover, the company is sitting on millions of dollars of unpaid bills and a "chaotic corporate structure" between its U.S. and Chinese operations.

Bottom line, the report stated that if Faraday Future's presence at CES doesn't attract new investors, it may be game over for the startup by May.

Latest Ratings for TSLA

Jul 2019ReiteratesUnderweight
Jul 2019MaintainsBuy
Jul 2019MaintainsNeutral

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