Hyperdrive
A Tesla Collapse Would Boost European Carmakers, Bernstein Says
- U.S. EV maker is ‘structurally unprofitable:’ Max Warburton
- VW, Daimler, Continental seen benefiting should Tesla fail
A Tesla Inc. Model S electric vehicle charges at a Supercharger station in Oftringen, Switzerland.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
Germany’s car industry, including Volkswagen AG and supplier Continental AG, stands to gain in both business and stock prices should Tesla Inc.’s precarious finances lead to the U.S. electric-vehicle manufacturer’s collapse, according to analysts at Sanford C. Bernstein & Co.
Tesla’s initial success with the Model S sedan, which a carmaking rival called “deeply impressive,” seemed to show that new battery-power systems could soon overtake conventional engines, and that depressed the shares of established original-equipment manufacturers, Bernstein analyst Max Warburton wrote in a report Monday.