Securing a trademark is a vital move for most companies. Some will not even announce a new product without having the trademark secure. But sadly, electric vehicle giant Tesla (TSLA) is not one of them. It turns out that Tesla’s attempt to trademark “Robotaxi” was declined by the United States Patents and Trademark Office. New reports note something similar just happened to Cybercab as well. The news did nothing good for stock prices, and sent Tesla shares careening down over 4% in Tuesday afternoon’s trading.
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The reports suggest a series of problems for Tesla’s naming strategies here. Robotaxi was apparently refused as it was considered “too general” to be secured. No one, after all, can claim a trademark for “cheese.” But Cybercab was a bit different, as it was not considered too general, but rather, was already taken by the time Tesla showed up to file the trademark application.
A company called Unibev got there first, a French beverage company that focuses on hard seltzer. But reports also suggest that the beverage company is not actually doing anything with the trademark, making it a “squatter.” Given that Unibev also has a trademark filing on Teslaquila, which Tesla also tried to use in marketing a branded tequila, this is actually nothing new for Tesla.
A Lunchtime Eye Opener
Then came the story of Granada Hills’ Ali Baba Persian Restaurant, where people were having lunch, relaxing, and trying to rally strength to finish out the day. But that all changed when the Tesla crashed into the building the restaurant operated out of.
No arrests were made as a result of the accident, and no one confirmed if drugs or alcohol were involved. No one confirmed if it was a case of Tesla’s Full Self-Driving running amok again. But reports did note that the white Tesla that struck the building “…veered off the road and onto the sidewalk.” And this is why they recommend that you do not sleep while the Tesla drives itself.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, nine Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 14.53% rally in its share price over the past year, the average TSLA price target of $393.89 per share implies 8.5% downside risk.
