Tesla's initial success with the Model S sedan, which a carmaking rival called "deeply impressive," seemed to show that new battery-power systems could soon overtake conventional engines, and that depressed the shares of established original-equipment manufacturers, Bernstein analyst Max Warburton wrote in a report Monday.
But now, the Palo Alto, California-based company appears to be "structurally unprofitable," with high fixed costs, a much smaller market for its models than expected and technology that is no longer unique, Warburton said. That compares with Daimler AG's Mercedes-Benz brand and BMW AG, which consistently generate cash and are set to widen their electric line-ups soon.
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