The bear case is that Tesla merely becomes the worlds number 1 electric car manufacturer but does not become the worlds only electric car manufacturer. Right n

The bear case is that Tesla merely becomes the worlds number 1 electric car manufacturer but does not become the worlds only electric car manufacturer. Right now Tesla's market cap is about 10x that of Ford, on a third to half the revenue (2021 numbers aren't available, I'm estimating based on Q1/2/3). Tesla was about 2x as profitable as ford in q3 2021, but that varies a lot quarter-to-quarter. It was generally around 10% though. Instead of car companies, consider a similarly sized company in market cap, Meta. Meta has 85 billion in revenue and a 30% (!) profit margin. For Tesla to grow into its cap it needs to massively increase both its scale and its profitability. It'd need to more than double its revenue while also doubling its margins. New sources of revenue for tesla are going to be moving downmarket, which makes profit margins hard in a manufacturing business. Tesla has nice cars but it has a lot of competitors with deep sales teams and manufacturing excellence (consider other comments in this thread: Tesla cars have bad fit and finish for how expensive they are and lack a lot of standard features). Tesla is clearly going to continue to be a big car manufacturer but its current valuation requires that it become staggeringly gigantic.