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This is "no one goes there anymore because it's so crowded" argument. Solar is big business and will become even bigger (because the economics are great and be
by kjksf 7y ago
This is "no one goes there anymore because it's so crowded" argument.
Solar is big business and will become even bigger (because the economics are great and becoming even better).
Commodity or not, some company will make good money there. That company could be Tesla.
As to blanket "commodity" argument: McDonald sells hamburgers, Coca-Cola sells flavored water in a glass bottle and StarBucks sells coffee in a plastic cup. There's money to be made in commodity businesses if you are big enough, have the economies of scale and the leading brand.
- xkjkls 7y ago> This is "no one goes there anymore because it's so crowded" argument. This is a very true argument about the margins/economics of a business. If it is easy for competition to enter, it becomes very hard to make a high-margin, valuable business out of it. > As to blanket "commodity" argument: McDonald sells hamburgers, Coca-Cola sells flavored water in a glass bottle and StarBucks sells coffee in a plastic cup. All of these have substantial moats in either brand, training, or real estate. In what way does Tesla have any of these (brand matters far less for larger financial decisions like this) and why is it any advantage to any of these areas to have this attached to an electric car company? And in this area, they already are no longer the leading brand, and have fallen behind many other solar companies.