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Sure - but the goal remains the same. More profit $ in the future. CEOs need to build confidence that they can do that sustainably and for a long period of time

Sure - but the goal remains the same. More profit $ in the future. CEOs need to build confidence that they can do that sustainably and for a long period of time. And people will judge the methods to build this confidence. But the goal remains the same. Elon has both been very successful and very unconventional in his ability to do this. And that's great - we should always strive to give a lot of freedom in this and allow the best to win. It's a nice mirror of nature - try w/e crazy idea you want, and if it works, it works!

McLaren_Ferrari 4y ago
Profit without product leads straight to jail. Or if you can pivot fast towards a political carrer or a religious cult leader. The goal should be marketshare. That's the true measure of future profitability because it means that you have a huge moat. Tesla is a 20 year old company and in this timeframe it managed to gather 1.3% share of all the cars sold in 2021. There is a reason why Porsches and Ferraris are just as common as Teslas on the road. Porsche and Ferraris might be slightly more expensive but they have been doing it for longer so it balances itself out Tesla was founded in 2002. That's 20 years ago. During the same timeframe Microsoft managed 95% share of Computer OS, Google 90% share of search, Standard Oil 85% of oil production. Hell, even Escobar managed to get 80% of the global cocaine market.
- jjmorrison 4y ago
  There's laws you need to follow of course. But again, market share is another interesting signal (just like a CEOs behavior) that one might use to assess if they think the company will have a long term ability to generate more $. But the goal is always to generate more $s in the future. Apple's shrinking market share of the smartphone market doesn't matter, because they are achieving their goal of profit generation. Blockbuster died maintaining a great market share of the video store rental market that disappeared. Netflix lost all DVD rental market share and pivoted the whole company to a streaming service. All of them the goal remains generate profits.

McLaren_Ferrari 4y ago

Profit without product leads straight to jail. Or if you can pivot fast towards a political carrer or a religious cult leader. The goal should be marketshare. That's the true measure of future profitability because it means that you have a huge moat. Tesla is a 20 year old company and in this timeframe it managed to gather 1.3% share of all the cars sold in 2021. There is a reason why Porsches and Ferraris are just as common as Teslas on the road. Porsche and Ferraris might be slightly more expensive but they have been doing it for longer so it balances itself out Tesla was founded in 2002. That's 20 years ago. During the same timeframe Microsoft managed 95% share of Computer OS, Google 90% share of search, Standard Oil 85% of oil production. Hell, even Escobar managed to get 80% of the global cocaine market.

jjmorrison 4y ago
There's laws you need to follow of course. But again, market share is another interesting signal (just like a CEOs behavior) that one might use to assess if they think the company will have a long term ability to generate more $. But the goal is always to generate more $s in the future. Apple's shrinking market share of the smartphone market doesn't matter, because they are achieving their goal of profit generation. Blockbuster died maintaining a great market share of the video store rental market that disappeared. Netflix lost all DVD rental market share and pivoted the whole company to a streaming service. All of them the goal remains generate profits.