Tesla needs more than just steady supply of cheap batteries to make it. As a company it's boom or bust. Musk is extremely bold. Many investors forget that bo

Tesla needs more than just steady supply of cheap batteries to make it. As a company it's boom or bust. Musk is extremely bold. Many investors forget that bold=risk. 1. Aggressive cash-negative growth. Tesla is not going to make profits with Model 3. Currently Tesla needs more capital to finance future losses instead of than future returns. Musk has wooed many investors that may not be as patient as they should. Musk estimates that Tesla will make profit in 2020, but it's not looking good. 2. No sustainable competitive advantage in technology. Most of the important intellectual property is owned by Panasonic. Cars are nice and different, but they have suffered from reliability problems. Tesla's warranty costs are also higher than its competitors ($2,000 in warranty accruals and $1,000 on repairs per vehicle in last year). 3. Tesla is small manufacturer and it has fragile and stretched supply chain (Tesla manufactures tens of thousands of cars, competitors manufacture millions). Subcontractors are not going to squeeze their profit margins for Tesla. Even if his dream "all cars will be electric" will become true, Tesla as a company is not necessarily the winning bet.