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Tesla as a long term investment going forward largely depends on whether you view the electric car as a disruptive innovation (breaks established car companies'
by aazaa 7y ago
Tesla as a long term investment going forward largely depends on whether you view the electric car as a disruptive innovation (breaks established car companies' business models) or sustaining innovation (does not break established car companies' business models).
Established players tend to have the upper hand for sustaining innovation. Sustaining innovation can start at the top of a market and work down.
Disruptive innovation favors the upstart. However, disruptive innovation starts at the bottom of a market and moves up.
The more I see what Tesla and other car companies are doing with EVs, the more it seems that the electric car is actually a sustaining innovation.
- kentlyons 7y agoTesla is probably a new market disruption. If so electric is a bit of a red herring. There is some evidence of this with the trade in data. The analogy is apple taking out Nokia Motorola and Blackberry with a phone that wasn't good by the standards of the day since it was playing a different game.
- xkjkls 7y agoWhy? Effectively assembling vehicles at margin seems to be the major key to the auto industry EV or ICE. The existing competitors still have greater skill at that.
- kmlx 7y agoi view Tesla as a low volume car manufacturer. so low volume that right now they're simply not that interesting. and i don't see them reaching millions of cars per quarter. like VW, Hyundai or GM. hopefully they'll prove me wrong, and come out with a $15k car next year or something. in the meantime i'm holding my hopes up for the upcoming crop of ev's with sub-tesla prices from all the usual suspects.
- nickik 7y agoThe competition also can not simply produce millions of EVs. The economic problems are very real. In fact one of the reason they are not pushing it as much as they could, is because EV don't make profit for them.