Tesla Bulls and a Trillion Dollar Competitive Gap

As Tesla’s market cap surpasses the trillion dollar mark, Tesla’s bulls are ecstatic. They have every reason to be, too – the company they believed in exploded in popularity, established itself as the major player in the electric vehicle business, and made people who believed in it the biggest and big money gags. As I type this, life is good for Teslanars, and life is very, very good for Tesla Technoking Elon Musk, who feels confident enough in his first place as the richest human in the world that he revealed his intention to send Jeff Bezos (himself worth a handy $ 200 billion) a silver medal, for second place.

By the way, this valuation makes Tesla the most valuable automaker in the world. It’s also worth noting that Tesla is not only the most valuable in terms of market capitalization, but the company is actually worth more than almost every other automaker. combined. And, while a number of outlets have denounced Tesla’s “insane” pricing in the past, some of Tesla’s rival automakers – and ICE automakers too, while we’re at it – are starting to take the existential threat posed by Tesla very, very seriously.

“It is recognized that Tesla holds a preeminent position in terms of EV technology,” said Peter Rawlinson, CEO of future Tesla rival Lucid Motors and one of the automotive engineers behind the Tesla Model S, which defines the genre in an interview at the BloombergNEF Summit in San Francisco last year. “They are even further ahead than reported, and I think the gap is widening, not closing.”

Rawlinson isn’t the only auto CEO to show up. According to Detroit Free Press, Ford CEO Jim Farley had a lot to say about Tesla’s rise to power. “If Ford were a trillion dollar company, our stock would be worth about $ 250 a share. Think about Tesla’s value creation right now. And they have resources, smart people, the Model 3 is now the best-selling vehicle in Europe. Not electric. Flat. It was the best-selling vehicle in the UK. Most months, it is the best-selling vehicle in California. Not just electric, but globally. If we are to be successful, we can no longer ignore this competition, ”Farley reportedly told Ford’s 20,000 employees on the call. “Tesla maximizes the use of electrons in the vehicle. No one does it better than them.

If you’re a dedicated Tesla Bull looking for an excuse to double your TSLA investment, the fact that Ford is taking Tesla seriously is big news – and the Bulls are using this kind of news to drive TSLA stock prices up. I don’t know about you, but it strikes me as crazy that a company like Tesla is valued several times more than a company like $ 80 billion Ford, a company that has been building cars and trucks profitably for over a decade. ‘a year. century.

Enough about me, though. I invite you to check out Johnna’s original 2019 article, below, and see how well you think he has withstood the market changes of the past two years – and Tesla’s Trillion Dollar Reality. Then scroll down to the comments section and let us know what you think the next two years could bring to Tesla Bulls and Elon Musk’s True Believers. Enjoy!


By Johnna Crider, November 8, 2019.

Tesla Bulls talks about competitive moat

Image courtesy of Tesla.

A Tesla bull named David recently addressed Tesla’s competitive moat in a Average article. He actually wrote the article for friends who seem to think Tesla is just an electric car company that will most likely fail, but then decided to share with the world. David makes several good points in his article and sums up the mindset people, especially shorts, have about Tesla, saying, “It seems like the dominant notion is that Tesla is just another car company on the market. a difficult market dominated by titans. , and Tesla may therefore not survive.

Tesla, however, has surrounded itself with a competitive divide that many can’t seem to swim across. Three things David talks about in his article actually form Tesla’s competitive divide, and other companies – not just automakers – can learn from them. Several key points David covers in his article are:

  • The type of Tesla business is really
  • Tesla’s location
  • The Tesla Advantage

Tesla, the company

Tesla not only builds cars, but also computers that work in cars. He builds software for vehicles. Competitive combustion cars can be thought of as analog devices, while an electric Tesla is a digital (i.e. pluggable) device. David sums it up with: “What we are getting is an iPhone in the age of Nokia devices.”

Location, location, location

The United States is the world leader in the computer software industry, and Silicon Valley is the epicenter of this leadership. That’s why Tesla’s location had to be in Silicon Valley. “[A]At some point, “writes David,” choosing a car with the right software will cease to be an option. If you can’t call the car from your app, play video games while parked, get firmware updates overnight, see your dog while parked, get notifications on your mobile if someone approaches, you just won’t notice.

Tesla Market Advantage

Tesla’s main advantage over new companies like Rivian is that it has a head start. David mentions that the electrification of automobiles has flattened competition in the same way the internet has. Who uses phone books when you can just search for them on Google Maps? Tesla’s current status and benefits are just a wave in Tesla’s competitive divide.

Tesla’s focus on software gives it that cutting edge that mainstream automakers seek for dressings. But it will only get worse for them.

What we are seeing with Tesla are the results of over a decade of innovation, hard work and creativity. This force, if you will, will continue to grow. The beautiful thing is that all this brilliant engineering started out as a mere thought, an idea. Imagine what you could create if you really put everything in!

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