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For the first time in recent years, I missed the annual Consumer Electronics Show that was held in Las Vegas last weekend. In case you've never heard of this or never been, it's the largest consumer electronics and technology tradeshow in the world and showcases over 3,800 companies.
This year, the big "reveal" was the Faraday Future FF91 electronic car. It didn't fail to impress either, with the company securing over 64,000 pre-orders.
And this has led to some speculation that this small startup company could soon become a dominant player in the automotive industry.
In fact, some of the media pundits have already predicted Faraday becoming "the next Tesla." But the patterns say otherwise…
Tesla Has Become "Too Big to Fail"
Faraday is an American startup tech company that has high aspirations to not only build an electronic car to rival those produced by Tesla Motors Inc. (Nasdaq: TSLA), but to be a dominant player in that space. The company's plans include developing intelligent electric vehicles. It also has probably the most nontraditional auto business model seen to date, which includes car owners subscribing to Faraday apps.
But some of the major concerns it's facing right now include:
- Its chief executive offices jumping ship (after a group of senior executives already bailed)
- A significant lack of engineers
- Millions of dollars in unpaid debt that's led to the halting of its $1 billion Las Vegas project
All of this leads me to Tesla…
Now I can tell you off the bat that I'm a bit biased toward Tesla. Last weekend, my wife and I took a test drive of the vehicle when were in the Tesla showroom in Sarasota, Fla. Although my wife wasn't crazy about the look of the last model, the redesigned front-end changes are much more appealing. And although it seems a bit cramped upon opening the door, it's actually very roomy when you get inside – especially with the all-glass roof.
Driving the Model S is like a dream… it's a smooth ride once you get the hang of the energy regeneration feeling when you let off the accelerator. This car really is a piece of art. It feels like you are driving a computer on wheels that tracks every your every movement as well as the outside world's. So my wife and I are planning on buying either the 90D or the "Fast and Furious" model, the P100D.
But there's more to the mark Tesla's made on the world…
Tesla is currently the only electric car company in the world that is publicly traded. Now with Faraday Future, you might say that competition could be a good thing. But unless Faraday can get things in order and stay afloat, there won't be any competition. Furthermore, all of the excitement over Faraday will actually help Tesla by keeping its electric cars in the spotlight and spurring consumer interest. And if that excitement dies …
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.