Nov

25

TSLA, from Julian Rowberry

November 25, 2017 |

 I was thinking about TSLA the other day after seeing the new promotional video with the truck and sports car. It's business trajectory reminds me of many tech business models, such as Uber. Which is create an app for an existing product that bypasses laws, regulations and taxes and then abuse ones competitive advantage.

The traditional car companies ceased to be car production businesses and became finance companies a decade or two back. Will TSLA cease to be a car company and become an energy company? TSLA can bypass consumption taxes on fossil fuels and god knows what else, while setting up 'refueling stations' to resell energy. They'll have a repeat business where they buy energy in bulk and resell it . To their clients and others. Being the first guys in, they'll set up a monopoly where they can. Energy will turn into their main business. The cars made will become rubbish and they'll exist like a business such as Verizon. How long will it take governments to cotton on? And when they do, will it be too late?

Jim Lackey writes:

Lack sees shades of 1999 when E brokers became higher market cap than brick banks. My buddies were 6 months too early. If or when AAPL trades 1/20th of US GDP it may be the csco of the year. One realizes no one ever made selling them. From the bleachers there is only tracking stocks missing from a lesson I do not wish my son to learn like dad, the hard way. Musk after pay pal was cut off by banks and the street in 2008. We were all busy fighting for our lives. The first guy through the door always gets bloody. I'm sure he does not care about his stock owner partners. He's said time and again, do not buy. Interesting why anyone would own this paper when they are fiduciary. I know why my old trading friends are caught short. Tis the season to squeeze. 


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  1. Andrej Bojovic on November 25, 2017 9:40 pm

    I agree with Julian that TSLA is far from a normal car company. Even their cars only look like cars when they’re actually a bloated marriage between a large electric drill and a smartphone.
    Their customer base is like a rock band’s fan club so they get all the marketing they need for free, with social media providing the platform. A lot of their customers aren’t even car fans, just people who like cool expensive gadgets.

    And they’re a tech company employing the best engineers in the world, their progress of speed is counterintuitive because it’s not linear.

    In 10 years they’ll take a piece of the market from the car companies, the oil companies, the electric companies, the trucking companies, the convenience stores, the construction companies, the plane companies, Uber, public transport and a few others that even they themselves don’t know yet.
    And they’ll have a jolly good ride while analysts will keep thinking they’re looking at a car company just because a Tesla looks like a car.

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