Posted on September 19, 2016 by Roger Pressman
Editor's Note: This is an article excerpt from Seeking Alpha by EVANNEX Founder Roger Pressman.
Over the past few years, there has been heated debate about the proper valuation for a company like Tesla. At the risk of over-simplifying, many who defend Tesla's valuation do so by suggesting that demonstrably high demand for the forthcoming Tesla Model 3 — a lower price point, higher volume battery electric vehicle (BEV) — will generate the requisite revenue and profit to justify the company's valuation. Those who are concerned about Tesla's valuation suggest that competitive BEVs will impact demand for Tesla's products, thereby impacting sales volume, thereby negatively affecting sales and profitability and ultimately impacting stock price.
Currently, there is only one competitive BEV that will be available before the Tesla Model 3 is available to the market — the GM Bolt. In recent weeks, there has been much media buzz about the competitive posture of the GM Bolt with respect to the Tesla Model 3. This has been fueled by GM's announcement that the Bolt will achieve an EPA rated 238 miles of range on a full charge, giving it an eight percent range advantage…
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