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Auto industry will never let Tesla drive at high speed, analyst tells RT’s Boom Bust

 Auto industry will never let Tesla drive at high speed, analyst tells RT’s Boom Bust
Tesla's stock has been under serious pressure over the past week, at times dropping below $200 per share. Even though shares have pared some of the losses so far, the stock is still down 3.11 percent to $205.08.

The company has taken many attempts to remedy the tense situation. Earlier this week, Tesla said it would reduce the prices of its two most expensive models. Shortly after a weak first quarter report, the company announced plans to sell car insurance to Tesla owners.

Lauren Fix, an automotive analyst known as “The Car Coach” has shed light on what to expect from the producer of the world’s first massively produced electric vehicle.

Also on rt.com Tesla stock continues to crash as Morgan Stanley adds fuel to the fire

“I think we’re going to have a second-quarter loss with Tesla,” the expert told RT’s Boom Bust. “I mean it’s great to say that he’s got all these great ideas, but realize that this insurance idea that he has is great only as an idea.”

The analyst stressed that getting an insurance company approved takes passing through a lot of government hurdles. “Beyond that fact, you have to be able to get a reinsurance company back it up.”

“Plus the fact that we are looking at the product that’s not being purchased. Theу lost their federal tax credit here in the US and across other countries. They’re no longer getting that the same drive because of competitors, such as Jaguar and Audi and Mercedes, which are really taking up a chunk of that business,” Fix added.

The expert projects Tesla to face second-quarter losses with the company’s stock to drop well below $200.

For more stories on economy & finance visit RT's business section

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