donald said:
Zythryn said:
It is priced on future earnings, and there is a lot of risk with such a young company.
But it is a double risk. Not only are tesla's earnings at higher volumes unknown, but no-one has yet stopped to discuss the impact of competition.
Tesla is small and nimble and has responded far quicker than conventional VMs, but small and nimble only gives you a market advantage until the dinosaurs lumber up. Then they flatten you! Talk of 30% profit margins isn't living in reality when someone else is prepared to do the same as you're doing and accept 10%. If one company sees another making money, they'll move in soon enough when the volumes justify the investment.
I agree.
As a matter of fact, I thought for sure one of the big auto makers would step up and beat Tesla to a large luxury sedan.
Not only didn't they, but most kept crying out vaporware right up until December of 2012.
At one point, Tesla could have been squashed like a bug.
Now though Tesla has a unique sales platform advantage (direct sales which people seem to prefer to dealers).
They have their 300 superchargers across the world, and growing at a rate of about one/day.
They are constructing a gigantic battery factory to bring down prices even more.
They re installing solar and battery backup at a few of the supercharger sites to allow them to spend less on electricity.
Many view TSLA as a Disruptive company. Similar to buying MSFT stock back in its early years, or Apple at $12/share before the iPod/iPhone came about.
The only company I see beating TSLA to a sub $40k 150 mile range car is Nissan.
The rest just don't seem to have put their heart into it.
They will though, when they realize that not doing so is just going to mean having to fight with the other dinosaurs over a smaller and smaller market.