Tesla Motors Inc. (NASDAQ:TSLA)’s stock surged as the company’s quarterly earnings beat market estimates and the company announced that it will start the construction of its $5 billion Gigafactory in a partnership with Japan-based Panasonic. On the other hand, LinkedIn Corp (NYSE:LNKD) reported a robust second quarter on strong growth in newer businesses like employee recruitment. Kara Swisher, Re/code Co-executive editor, provided CNBC’s ‘Squawk Alley‘ team her opinion regarding these two companies.
Swisher said that LinkedIn Corp (NYSE:LNKD) is moving into newer areas like sales. The core segment, that LinkedIn operates in, is recruitment and moving to the sales side of recruitment is a natural and sensible transition. While there are many players in the recruitment space, LinkedIn Corp (NYSE:LNKD) enjoys a leverage given the huge database of professional profiles it has. “They are trying to be the Facebook of business, essentially. And I think probably they are in good shape to do that,” she added.
LinkedIn Corp (NYSE:LNKD) is proposing to develop a software that will enable the company to utilize its huge data of professionals and companies more efficiently and generate effective leads for recruiters. Such channelling of profiles is relevant to recruiters and LinkedIn Corp (NYSE:LNKD) has the tools to do it, she thinks.
Talking about Tesla Motors Inc. (NASDAQ:TSLA), Swisher said that the company needs to bring down the cost of their batteries.
“[…] This company lost more money than ever. It is trying really hard to move from a niche kind of thing. They only sold 10,000 cars in this quarter, it is not a lot of cars. So again, it is small and yet it is a big idea. They have to bring down costs of batteries, that large battery is the biggest cost for Tesla Motors Inc. (NASDAQ:TSLA),” she noted.
Swisher feels that while the Gigafactory is an interesting concept, the key for the electric car maker lies in making battery cost more efficient.
Disclosure: None
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