Tesla, Inc. (TSLA)
Everything that could go wrong with Tesla pretty much did in the first quarter: delivery delays, price discounts on the Model 3 and robust cash burn were among the few lowlights.
“The demand story at Tesla is quickly changing and the company has unfortunately not adjusted to an evolving EV landscape (especially in the US) with the well thought out marketing and distribution logistics needed to manage this difficult and complex hand holding process for customers, employees, and investors,” wrote now former Tesla bull Dan Ives at Wedbush.
The car maker’s shares shed nearly 4% intraday, trading near $249 after reporting a loss on Wednesday that was far wider than analysts had expected. Since the start of 2019, Tesla has burned through more than a $1.5 billion in cash, with demand for its electric cars on the wane.
Starbucks (SBUX) 新對手－Luckin
Luckin Coffee, which has been expanding at breakneck speed, currently operates 2,370 stores in 28 Chinese cities and plans to open 2,500 new stores this year with the goal of displacing Starbucks as China’s largest coffee chain in the process.
Luckin has waged its cash-burning caffeine war with generous subsidies, speedy delivery and viral promotions on social media, which in turn has also pushed Starbucks to form a tie-up with local tech giant Alibaba to deliver coffee to customers.
Many of China’s competitors in Southeast Asia have already joined the belt and road plan to grow global trade, meaning the manufacturing situation in the mainland is likely to get worse, the researchers said, as investment in the initiative may speed up the exit of low to mid-end production from China to the likes of Vietnam and India despite the benefits of better infrastructure and supply chain.