Earlier this year the international equity team at R Squared Capital Management wrote a blog about the potential winners and losers in the electric car race. There’s been some recent news that adds some fun color to that debate.
Remember in college when you let your friends borrow your car to pick up beer and they brought it back with no gas, potato chips mashed into the seat, and perhaps a few dings in your door that you didn’t recall? Tesla’s been in the headlines lately about both of those things: beer deliveries and people borrowing their car.
First, their “fake friends” at Mercedes (Daimler) decide to rent a Tesla Model X through an agency that rents privately owned vehicles for weddings and events, proceeded to beat the car up, dismantle it, and then returned it to the unknowing couple with significant damage. According to a story in Der Speigel, the car was not only disassembled and screwed back together, it was also “tested under extreme conditions - including heat, on a vibrating track and a traction track.”
At the same time, Tesla also recently announced that their real friends at Budweiser (Anheuser Busch) have ordered 40 Tesla Semi trucks that they will use to deliver beer and help the firm fulfill its commitment to reduce its operational carbon footprint by 30 percent by 2025. News reports also stated that Anheuser-Busch’s effort confirmed orders from Nikola Motors for their battery/fuel cell hydrogen trucks and Uber’s Otto autonomous trucks.
The electric car race is still very much wide open, but it certainly is interesting to see what the players are doing with their time.
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As international equity investors, the team at R Squared Capital Management (former team at Julius Baer / Artio Global) utilizes fundamental and macro analysis in our quest to correctly identify structural tailwinds and headwinds at the geographic, sector and company levels.
FROM THE DESK OF LUIS AHN
Luis Ahn is a Partner and Analyst at R Squared Capital Management.
Prior to joining R Squared, Luis was a Senior Analyst at Bloom Tree Partners.
Luis received an MBA from The Wharton School and Bachelor of Science in Quantitative Economics and Computer Science from Tufts University.
To view the firm biographies of RSQ, click here.