Tesla Motors Inc. (TSLA) Facing a Lawsuit in China as Demand Continues to Grow


Giant electric maker Tesla Motors Inc. (NASDAQ:TSLA) is currently facing a trademark lawsuit in China from a businesswoman who is demanding the automaker stops its sales and marketing activities. In an interview on CNBC News, Northland Capital Markets’ senior research analyst, Colin Rusch, said that there is nothing to worry about on the case, considering the Chinese court had earlier ruled in favor of the automaker.

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Mr. Rusch believes that this is just a last gasp attempt by the Chinese businessman to extort money from Tesla Motors Inc. (NASDAQ:TSLA), going as far as saying he believes the case is 99.9% ‘dead.’

“The Chinese courts have already ruled in favor of Tesla. This is just a last gasp attempt by this gentlemen to extort a little bit of money out of Tesla. ” said Mr. Rusch.

The senior research analysts quashed suggestions of credibility concerns over Tesla Motors Inc. (NASDAQ:TSLA), considering the head of its China operations had earlier told Reuters that the case dispute had been resolved. Mr. Rusch expects Tesla to go through the August 5th-court process as a formality at the back of having the law on its side.

Tesla Motors Inc. (NASDAQ:TSLA)’s demand levels are continuing to grow seen by high-inventory levels for the months of April and June. There had been suggestions that the automaker would need a big June in terms auto deliveries to meet its second-quarter target. The real issue for Tesla at this time according to the analyst are long-term drivers for growth and value creation.

Tesla Motors Inc. (NASDAQ:TSLA)’s full year guidance according to Mr. Rusch shows that the company is set to deliver a big third and fourth quarters, in terms of growth of up to 30%.

“The full year guidance suggests we are going to see a very big third and fourth-quarter growth in the order of 30%,” said Mr. Rusch.

There is also high expectations that the electric automaker will surpass its second quarter sales expectations of 7,850 vehicles.

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