Electric vehicle ads in the latest Super Bowl game are an indication that competition for Tesla Inc TSLA is on the way, Loup Funds analysts Gene Munster and Doug Clinton said on Monday.
What Happened: The analysts were of the view that Super Bowl ads are a good way to peek into where money is being spent and how it is going to impact lives in the future.
“The bottom line is you know there are some real EVs that are coming to market and that Tesla will have competition, where they just haven't had any competition sort of to date,” Clinton said.
The analyst said he believes Tesla will continue to sell more cars in the coming future but that there will be viable alternatives from legacy rivals such as General Motors Co GM and Ford Motor Co F.
GM plans to launch 30 new electric vehicles by 2025 while Ford aims to make 600,000 electric vehicles per year globally by the end of 2023.
“Tesla is going to be a very large auto OEM and the traditional automakers are still going to be around. I don't think you're going to see a wave of bankruptcies from these traditionals and..they are going to have competitive products in the market that are viable alternatives.”
Munster pointed out President Joe Biden’s social media post on the microblogging site Twitter that echoed similar lines — “the future of the auto industry is electric.”
The ads during last night’s Super Bowl were clear: The future of the auto industry is electric. My Administration is making historic investments in electric vehicles and is building a nationwide network of EV chargers — creating good-paying, union jobs.
— President Biden (@POTUS) February 14, 2022
Why It Matters: Legacy automakers showed off their electric vehicles during Sunday's Super Bowl game even as market leader Tesla stayed away from the event.
Brands paid up to $7 million for a 30-second spot this year to air their commercials.
See Also: Elon Musk Reacts To EV Startup Polestar Mocking The Tesla CEO In First Super Bowl Ad
Legacy automakers around the globe have amid government pressures set tighter deadlines and kept aside billions of dollars to make the switch to electric vehicles from gas-powered engines.
Price Action: Tesla shares closed 1.8% higher at $875.7 a share on Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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