2 ms·

Tesla is in a spot similar to where Apple was in 2009. The iPhone was a well established product that differentiated itself from a sea of similar looking androi

Tesla is in a spot similar to where Apple was in 2009. The iPhone was a well established product that differentiated itself from a sea of similar looking androids. The world was coming out of a big recession and the iPhone catapulted Apple into a trillion dollar market share in the next 10 years. This is what Tesla investors hope for Tesla’s future. That ten years from now, there would be Tesla and all other car manufactures looking to emulate Tesla by producing a couple of electric models that would lack the features or refine of Tesla . Tesla has a first mover advantage similar to what AWS had for the first 5 or so years.

ssharp 6y ago
Apple also managed to mostly stave off competitors from eating away at their incredible margins while still staying within price bounds that make their products accessible to the mass market. I'm not sure Tesla can do the same. There is a big difference between paying the Apple premium on a $2000 computer or $800 phone and paying the Tesla premium on a car. You're dealing with a premium upwards of $10,000. The Model Y, a compact SUV, starts at $53,000. That is wildly out of bounds for most people. Factor in the low price of gas right now, the unreliability of Teslas, and tax credits that are going away and you really erode away the savings that put a dent into the Tesla's value equation. You're left with a vehicle that competes on value moreso against a smaller luxury compact SUV class. The big question is if Tesla can continue to see gains from scale that either allows them to address a larger market while still keeping margins at an industry leading level. All that while managing to stay ahead of the influx in competition that will be coming from all the major auto manufacturers as they increase their EV and battery capabilities.

2 ms·

Tesla is in a spot similar to where Apple was in 2009. The iPhone was a well established product that differentiated itself from a sea of similar looking androi

by downvoteme1 6y ago

ssharp 6y ago
Apple also managed to mostly stave off competitors from eating away at their incredible margins while still staying within price bounds that make their products accessible to the mass market. I'm not sure Tesla can do the same. There is a big difference between paying the Apple premium on a $2000 computer or $800 phone and paying the Tesla premium on a car. You're dealing with a premium upwards of $10,000. The Model Y, a compact SUV, starts at $53,000. That is wildly out of bounds for most people. Factor in the low price of gas right now, the unreliability of Teslas, and tax credits that are going away and you really erode away the savings that put a dent into the Tesla's value equation. You're left with a vehicle that competes on value moreso against a smaller luxury compact SUV class. The big question is if Tesla can continue to see gains from scale that either allows them to address a larger market while still keeping margins at an industry leading level. All that while managing to stay ahead of the influx in competition that will be coming from all the major auto manufacturers as they increase their EV and battery capabilities.