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I think this is possible, but not likely. Historically companies with such high valuations and extreme popularity don't perform well in the long term. If you go
by Gatsky 5y ago
I think this is possible, but not likely. Historically companies with such high valuations and extreme popularity don't perform well in the long term. If you got in 10 years ago you've done exceptionally well of course.
There is a lot of competition in electric vehicles coming. There is no reason to think that the EV industry will be materially different to the ICEV industry in terms of competition, margins and company performance when the dust settles. At the end of the day the market is the same, convincing people to spend many 10s of thousands on a complicated machine.
The huge asset price inflation that has happened over Amazon's history is also not going to continue.
Additionally there are some major risks to Tesla's trajectory. One is China deciding to freeze out an American EV company. Another is something happening to Elon Musk, which will cause a stampede of retail investors out the door.
- rcMgD2BwE72F 5y ago>There is a lot of competition in electric vehicles coming. There is no reason to think that the EV industry will be materially different to the ICEV industry in terms of competition, margins and company performance when the dust settles. At the end of the day the market is the same, convincing people to spend many 10s of thousands on a complicated machine. How do you explain Apple's shares of profits in the phone industry, then?