New Avenue Analysis analyst Pierre Ferragu on Wednesday famous that the buybacks introduced by automakers lately are harking back to the now-obsolete Canadian smartphone maker Blackberry.
What Occurred: “All these automotive producers shopping for again shares… it will finish in tears. Jogs my memory of BlackBerry shopping for again within the late 2000’s…” Ferragu, who heads the World Know-how Infrastructure analysis crew at New Avenue Analysis, wrote. The analyst’s take comes on the heel of Detroit-based automaker Basic Motors Co GM saying a $10 billion share buyback.
Blackberry, as soon as extremely well-liked, later fell out of date because it did not adapt to altering shopper preferences and rivals together with Apple Inc flooded the trade with touchscreen telephones versus Blackberry’s qwerty keypad ones.
By the late 2000s, Blackberry began dropping its buyer base to Apple’s iPhone.
Musk Responds: Tesla Inc CEO Elon Musk responded to Ferragu’s take with a brief however cryptic, ‘Sure.’
Apparently, Tesla itself has been referred to as the “Blackberry of the EV industry” earlier than by one other analyst; Tesla bear and GLJ Analysis analyst Gordon Johnson. In June, Johnson mentioned that Tesla’s valuation may implode as competitors intensifies and it turns into clear to buyers that it’s a struggling automotive firm.
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