Ross Gerber Says Tesla Is Pushing Ahead Of Competitors During COVID-19 Pandemic
Tesla Inc (NASDAQ: TSLA) has been one of the top performers in the market in the past month, gaining 71.3% overall. On Friday, Ross Gerber, president and CEO of GerberKawasaki, joined Benzinga’s PreMarket Prep and discussed the ways he said Tesla is benefiting from the COVID-19 outbreak.
The crisis has slowed down Tesla’s electric competitors, such as Rivian, he said.
“Everybody’s stuck on financing, and who wants to throw hundreds of millions into a speculative venture now?”
At the same time, Gerber said General Motors Company (NYSE: GM) and Ford Motor Company (NYSE: F) are fighting for solvency.
“If you go into the bond market today, there’s a lot of bonds for Ford and GM you can buy today. A lot of people don’t want them,” he said.
Gerber said Tesla’s only real competition in the EV market is in China. He said Nio Inc - ADR ADR (NYSE: NIO) is “garbage,” but said Geely and BYD are well-run companies.
China Loves Tesla
Fortunately for Tesla, the company is taking a large share of the Chinese auto market. Tesla’s ability to collect data and track all its users should appeal strongly to the Chinese government as well, Gerber said.
“China wants people in these cars because it tracks everything you do. It’s like a dream car for the Chinese government.”
Gerber said China and Europe should drive Tesla to go from selling 380,000 vehicles in 2019 to 1 million vehicles within two or three years.
In addition to Tesla, Gerber said he has faith in Gilead Sciences, Inc. (NASDAQ: GILD) in finding a treatment for COVID-19, but owns very little of the stock due to its poor performance over the years.
He is also investing in Walt Disney Co (NYSE: DIS) and MGM Resorts International (NYSE: MGM) in anticipation of an economic recovery.
Watch the full interview with Ross Gerber in the clip below, or listen to the podcast here.
PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.
Related Links:
Goldman Initiates Coverage On Auto Stocks, Says Industry 'Significantly Better Positioned' Than In 2008
Jefferies Upgrades Tesla, Says Company Is 'Doubling Market Coverage With Model Y'
Photo courtesy of Tesla.
Latest Ratings for TSLA
Apr 2020 | Goldman Sachs | Initiates Coverage On | Buy | |
Apr 2020 | Credit Suisse | Upgrades | Underperform | Neutral |
Apr 2020 | Jefferies | Upgrades | Hold | Buy |
View More Analyst Ratings for TSLA
View the Latest Analyst Ratings
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
