• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 33 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 33 mins Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 50 mins IMO2020 To scrub or not to scrub
  • 3 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? To get Jared (Frisch School 2.8 GPA) a Mideast win with peace deal ? China greatest threat next 50 years.
  • 8 hours Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 2 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 1 hour Crude oil?
  • 4 hours Greenpeace Blocks BP HQ
  • 2 hours Shale to be profitable in 2019!!!
  • 10 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 34 mins California's Oil Industry Collapses Despite Shale Boom
  • 14 hours Get First Access To The Oilprice App!
  • 2 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Leading Climate Change Fund Claims Tesla Is Overvalued

Tesla

A leading climate fund is dropping its support of Tesla after declaring it an overvalued stock, according to a new report.

“We don’t see upside,” Thomas Sorensen from the Nordea Global Climate and Environmental Fund, told Bloomberg by phone on Thursday. “What’s needed in cash flow generation to get to the current valuation -- we don’t see that happening.”

Investors have continued their enthusiasm for Tesla’s growth in recent months as the company prepares for deliveries of its Model 3 vehicle, priced for the mass market. Over the course of 2017, the company saw its shares rise 60 percent in value.

The speed of adoption of new technologies is making it difficult for investors unfamiliar with the green energy landscape to make educated investments in electric car technologies, the firm said.

“It’s going to be a race to the bottom for the whole industry,” Sorenson said. “In this big transition period, it’s very tough to point out the winners and the overall profitability of the sector. The risks are too high.”

Tesla is expanding its reach in the battery industry by signing a new contract with the South Australian government to build the biggest battery in the world after a power outage sank the state into darkness last year. CEO Elon Musk vows to complete the project within 100 days, backing his promise with a confident money-back guarantee.

Related: The Next Big Offshore Boom Is About To Happen Here

Tesla won the tender for the installation in July and now, according to South Australia’s Energy Minister Tom Koutsantonis, work is on track to slip the switch in two months, when summer season begins in Australia and demand for electricity peaks. 

So far, Tesla has led the technical revolution in electric cars that has made the category appealing to the upper class. Now, companies like Dyson and traditional car manufacturers are beginning to participate in the electric category, which could squeeze Tesla’s future profits.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Jonas on October 03 2017 said:
    Nordea bank is one of the bigger culprits in the Panama papers. They have a long list of being caught being corrupti and helping with tax evasion schemes.

    They are also financing Russias nukes trough lending huge amounts of money to Rosatom.
  • Markp1950 on October 03 2017 said:
    Let's see any of these critics drive any other EV across country. Where are these competitors going to get their batteries? Hope that China delivers...

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News