Investor's Corner
Tesla’s experience in electric cars emphasized anew after Mercedes EQC reveal
Earlier today, Tesla stock was given a Sell rating by Goldman Sachs, citing the arrival of competitors from established automakers. Some of these competitors are dubbed as “Tesla Killers,” such as the Jaguar I-PACE and the Mercedes-Benz EQC. The financial firm’s renewed Sell rating on Tesla appears to have affected the sentiment of some investors, resulting in TSLA stock ending the day down 4.21% at $288.95 per share.
Earlier today, the electric car industry also welcomed its latest vehicle from legacy automaker Mercedes-Benz. At an event in Stockholm, Sweden, Daimler AG Chief Executive Officer Dieter Zetsche unveiled the Mercedes-Benz EQC, an all-electric crossover SUV that symbolizes the company’s commitment to the upcoming electrification of the transport industry.
“There is no alternative to betting on electric cars, and we’re going all in. It is starting right now,” Zetsche said.
Mercedes-Benz tried hard with the EQC, with Zetsche stating that the vehicle will be profitable, and that it would “offer the best package” compared to rivals. The EQC also looks very much like a conventional Merc SUV, with its almost understated lines, its high ground clearance, and its tough stance. The EQC’s basic specs are quite decent, with two electric motors that produce 402 hp and 564 lb-ft of torque. The SUV can accelerate from 0-60 mph in 4.9 seconds and hit a top speed of around 112 mph. That being said, the Mercedes-Benz EQC’s range and production date ultimately prove that it won’t be so easy for legacy automakers to gain EV expertise that is comparable to Tesla’s.
The Mercedes-Benz EQC is equipped with an 80 kWh battery pack, which puts its size between the base Model X’s 75 kWh battery pack and the Jaguar I-PACE’s 90 kWh battery. Despite its generous battery size, the EQC’s estimated range is very conservative at around 200 miles per charge. Charging the vehicle from 10% to 80% is also estimated to take around 40 minutes. The EQC’s apparent lack of range has not gone unnoticed. Alex Roy, a veteran of the auto industry, for one, noted that the EQC’s range was a big “miss” for the established German automaker.
In a way, this could be attributed to Mercedes-Benz’s lack of experience in designing and building all-electric cars. And it’s not just Mercedes-Benz, either. Jaguar’s I-PACE is listed with a 240-mile range, but informal, real-world tests online have noted that the vehicle’s battery consumption is quite high. The same could be true for the EQC. It might have a big enough battery, but it could prove to be the electric equivalent of a gas guzzler.
This is something that Tesla has refined over the years. Elon Musk has opted to develop Tesla’s battery packs and even its software in-house, allowing the company to create vehicles that just work. In terms of range, Tesla’s cars usually come very close to their rated range, in some instances even exceeding it. Even the Model X 75D — one of Tesla’s largest, heaviest offerings — could go as far as 237 miles with a 75 kWh battery. Tesla’s progress in developing and building electric cars ultimately cannot be discounted, as Volkswagen AG, a prominent German automaker, was one of the investors willing to help fund Tesla’s attempted privatization.
Another notable detail from the Mercedes-Benz EQC’s unveiling that validated Tesla’s experience in building electric cars is the German-made SUV’s production timeline. Mercedes expects to start manufacturing the EQC sometime next year, with deliveries beginning in 2020. Compared to Tesla’s hyper-aggressive timetables, Mercedes-Benz’s timeline is very conservative, especially considering that the automaker is looking to build the EQC in some of its existing facilities.
A Tesla Model 3 being assembled.
There is very little doubt that Tesla is the company that ultimately made electric cars desirable, proving to consumers that battery-powered vehicles are actually realistic alternatives to fossil fuel-powered cars. Since starting the production of the Tesla Roadster, the company has gained a lot of experience, a lot of it coming from trial and error. Over the years, Tesla has refined its battery technology, to the point where the company is now attempting to hit a battery pack cost of $100 per kWh. Its 2170 cells that power the Model 3 are also proving to be impressive, with Detroit veteran Sandy Munro praising it as some of the finest batteries he has ever analyzed.
A central part of the Tesla Killer thesis is that competitors from established automakers can easily catch up and overtake the California-based company with vehicles that are far superior in quality and performance. If the range and estimated delivery date of the Mercedes-Benz EQC are any indication, it appears that the arrival of these competitors might be just a little bit too late. After all, by 2020, Tesla is planning to start the production of the next-generation Tesla Roadster, a supercar to end all supercars. The Tesla Model Y, a CUV expected to be even more popular than the Model 3, would likely be in production by then as well.
Watch the Mercedes-Benz EQC’s unveiling in the video below.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
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