Actionable news
All posts from Actionable news
Actionable news in TSLA: Tesla Motors, Inc.,

'Tesla Killer' Faraday Future May Be Dead-On-Departure

Shares of Tesla Motors Inc TSLA 3.98% were trading higher by nearly 2 percent Wednesday morning as investors appeared to be brushing off a key product announcement from a presumed competitor.

Faraday Future, a somewhat-secretive electric-car startup that has been dubbed the "Tesla killer," unveiled its FF91 car. The 1,050-horsepower engine will be on the streets next year and can beat Tesla's fastest sedan in a zero to 60 miles per hour race.

'Dead On Departure'

Trip Chowdhry of Global Equities Research commented in a research report on Wednesday that Faraday Future's announcement is a "non-event" and "DoD (Dead-On-Departure").

According to Chowdhry, Faraday Future failed to offer consumers of high-end electric vehicles what they want in a car: an extension of their Apple Inc. AAPL 0.15% iPhone experience.

Specifically, Tesla's cars boast a 17-inch screen, multi-sensors, apps, over-the-air updates and other high tech gadgets and services. In addition, Tesla is creating an entire industry and ecosystem and offers a "big, broad and bold strategy," something iPhone users can relate to.

On the other hand, Faraday Future's "extremely narrow and myopic view" is even too small to "stir a cup of water."

Bottom line, Chowdhry continues to believe investors should be buying Tesla's stock on any weakness.

Image Credit: By Maurizio Pesce from Milan, Italia (Faraday Future FFZERO1 Concept Prototype) [CC BY 2.0], via Wikimedia Commons

© 2017 Benzinga does not provide investment advice. All rights reserved.