Tesla Motors Inc (NASDAQ:TSLA) has a market cap of approx. $26 Billion currently and seems like it has laid down its plans for the coming six years. In addition, analysts feel that the company has a lot of potential to excel in the electric cars segment.
George Galliers of ISI Global Automotive Team was on CNBC Squawk Box earlier today and he looked very confident about the potential of Tesla Motors Inc (NASDAQ:TSLA). He said that Tesla is targeting 20 million units by 2020 which would bring approximately $35 million in revenue just with the sales. He stated:
“At the moment they are operating at around 35,000 units per annum, but growing out to half a million, that’s a significant growth profile which you won’t see from any other OEM in the sector.”
When he was asked if Tesla Motors Inc (NASDAQ:TSLA) can sustain the competition from other market players like BMW or a Mercedes in terms of electrification of products, Galliers firmly said:
“Well, I think when we look at Tesla today, they clearly have an advantage in terms of the products they are offering. Nobody else is offering a full size Sedan EV; nobody is offering a sedan with the performance of Tesla and the fuel economy benefits. “
However, he felt that the German competitors will hit back and it is just a point of how quickly they can do it. Tesla Motors Inc (NASDAQ:TSLA) has grown very rapidly in the past couple of years and the other OEMs would need to act as quickly as Tesla to match up the rate. However, its peers are slower as they have an established setup and Tesla Motors Inc (NASDAQ:TSLA) has got the needed startup energy that enables the company to execute plans faster.
Galliers was asked if Tesla Motors Inc (NASDAQ:TSLA) at $26 Billion was small enough company for the other huge players in the market to take over or crack some kind of merger deal and he felt that the most likely candidate for any kind of an acquisition deal with Tesla would be Diamler as it already has a stake in Tesla Motors Inc (NASDAQ:TSLA) and it also has a good relationship with Tesla. However, at this point its not likely for any kind of movement towards Tesla from any major player as if it were to happen it would have happened a lot of years ago.
Pine River Capital Management has about 48.9 Million shares in Tesla Motors Inc (NASDAQ:TSLA). The other key investors are Whitebox Advisors with approximately 29.5 Million shares and Bart Baum’s Ionic Capital Management with around 20.5 Million shares, held as of the end of March.