4 ms·

What kind of company are they?

• mschuster91 6y ago
  A software company (where they are lightyears ahead of everyone else), an AI company (they've got far more real world training data than everyone else) and a battery management tech company (again, they have the most experience). The fusion of these three strong parts and their car knowledge (where their advantage over the competition is not the experience but the agility) is what drives the valuation. Tesla only has to solve scale (which they're beginning to do) and spare parts availability (which is going to solve itself but it needs time to build out a network) to utterly dominate the car market of the future.
  • u10 6y ago
    They don't sell software though... they sell cars augmented with software. If they don't have cars to sell they don't have any software to sell. Sure, one could argue the valuation is pricing in the value of the patents but that doesn't mean that Tesla is not overvalued. Not to mention most of their RnD and their capex goes towards manufacturing cars.
  • Traster 6y ago
    Huh? Tesla has to actually solve self-driving to justify their valuation. All the things you've listed might put them at an advantage solving that problem, but what their software does today doesn't justify the valuation. If it turns out that Tesla are probably 1 or 2 steps ahead of most fo the competition towards self-driving. It may turn out that we're a thousand steps away from self-driving, in which case their AI and software advantages simply aren't going to map to massive profits.