Tesla Motors, Inc.
) Model S has received top points from the Automobile Association
of America's Green Car Guide along with
Toyota Motor Corp.
) RAV4 EV. These vehicles surpassed the scores of the Audi A7 TDI,
the Lexus GS and
Nissan Motor Co. Ltd.
The Automobile Association of America conducts a review of
alternative fuel vehicles every year. The study is conducted by the
automobile club's Automotive Research Center on 80 hybrids
vehicles, electric cars, CNG-powered cars, clean diesels and
partial zero emissions vehicles. The association considers the
Tesla S vehicle the fastest green car, though they are concerned
about the low 265-mile range and long charging time.
However, Tesla S did not achieve the highest rating for value.
General Motors Co
) Chevrolet Spark won the tag of the best green car value vehicle
for 2014. Chevrolet Spark was followed by Hyundai Elantra GLS, the
Nissan Versa SV, the Scion iQ and the Nissan Versa Note SV.
Separately, Car and Driver magazine recognized Model S as one of
the slipperiest cars on the road. In the recent publication of the
magazine, there was a comparison between 5 vehicles with low drag
areas. Model S was declared the winner based on the analysis using
wind tunnels to determine the cars' drag and lift properties. The
vehicles compared were Toyota Prius, the Nissan LEAF, the Chevy
Volt and the Mercedes-Benz CLA250, apart from Tesla's Model S.
Recently, Tesla received a "B-" credit rating from Standard &
Poor's Ratings Services. The rating is six notches below investment
grade and falls in the junk category. Meanwhile, S&P assigned a
stable outlook to the rating, based on the projections that gross
margins of Tesla will continue to improve over the next year as the
company works to fulfill the demand for Model S.
The low credit rating is a result of Tesla's limited market share,
small operating scale compared with other automakers, focus on a
niche product segment and uncertainty related to demand in the long
term. Moreover, the electric carmaker might face difficulty in
managing risks related to future technological displacement and
A number of players in the field of green vehicles is expected
to increase in the future, which will hamper Tesla's prospects.
According to S&P, these factors raise doubts about long-term
prospects, despite the positive aspects of the company.
Tesla currently carries a Zacks Rank #4 (Sell).
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