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Tesla can capture more profit per car than GM has a chance to because Tesla doesn’t have third parties doing... - seats - selling - soon batteries - ai chip -

Tesla can capture more profit per car than GM has a chance to because Tesla doesn’t have third parties doing... - seats - selling - soon batteries - ai chip - soon insurance - charge stations is like if GM could own the gas stations This doesn’t even count the growth of the other product lines like utility grid storage and solar roof and Uber like services.

jgalt212 6y ago
> Uber like services Yes, 1 million robotaxis by the end of 2020. https://www.thedrive.com/news/38129/elon-musk-promised-1-million-tesla-robotaxis-by-the-end-of-2020-where-are-they https://www.thedrive.com/news/38129/elon-musk-promised-1-mil...
pinky1417 6y ago
Right, hence my 4x margin assumption for my back-of-the-envelope math. But I still think there's a limit to what any one company can do. The insurance company Allstate could be worth $1T if they end up entering a business producing revolutionary proprietary alternative fuel technology! Obviously, I think Tesla with Musk at the helm has a better chance of creating new markets than GM, Allstate, Exxon, etc., but I realize that there's some limit to what one company can do. Once your company's market cap gets in the trillion-dollar category, and the total market cap of the US stock market is 50 trillion, you shouldn't expect a 100-bagger.
JetSpiegel 6y ago
> because Tesla doesn’t have third parties doing... Big deal, they barely produce any cars. If Musk threatened to go to jail because a governor did not let him keep his plant open through COVID, he will be eviscerated by some UAW guy and will outsource the entire production ASAP.