Two thoughts on why Tesla's ceiling should not be considered simply a reasonable marketshare of the global car market. (1) I think you could have constructed a

Two thoughts on why Tesla's ceiling should not be considered simply a reasonable marketshare of the global car market. (1) I think you could have constructed a similar argument in ~2010 regarding the iPhone. Apple indeed did not capture a dominant market share by volume, but take the lion's share of the profits today -- converting many mid-level consumers to loyal customers of luxury goods.[1] Second to that, they are much more vertically integrated than the competition where the software, the hardware, and media are generally made by different companies. This allows them to extract more revenue from each customer. In my opinion Tesla's vehicles are well positioned to be the iPhone of cars where they widely expand the size of their addressable market. (2) Elon has said a few times that Tesla is best though of as a collection of a about a dozen different startups as opposed to simply a new entry into the traditional auto market.[2] These "startups" would include solar, insurance, self driving, battery tech, utility scale energy storage, dealership/service network, etc. [1] https://seekingalpha.com/article/420201-what-apple-and-starbucks-share-luxury-status-and-premium-pricing https://seekingalpha.com/article/420201-what-apple-and-starb... [2] https://twitter.com/elonmusk/status/1274544800558014464?s=20 https://twitter.com/elonmusk/status/1274544800558014464?s=20