Quote:
Originally Posted by GregWeld
I'm writing this in the vane of "WHAT TO THINK ABOUT" --- not a discussion on whether or not to buy or sell a particular name etc.
I'm sure you guys are all following Tesla (TSLA) - even if you don't own it - and it's relevant here because we're a car forum.
I see this morning that people have plunked down $1,000 per to simply "reserve" a car... a car that's not even in production yet -- and there were near 300,000 "reservations"! ELEVEN BILLION in future sales if all those folks take the cars. That's a big number.... and in anyones eyes - would be considered a huge success. We'll see if they can produce - and produce at a PROFIT. After all - making money is what drives any business.
So to me... what is this saying to the other manufacturers? Shouldn't they be waking up this morning and asking themselves where they are in this market? 300,000 people plunking cash down and waiting a year and a half for something they're not even sure will be produced! If I was an auto manufacturer - I'd be having a board meeting this morning and I'd be pounding the table for getting on this bandwagon! That's what worries me on TSLA.... while they're the known leader. What happens to the stock IF - big IF - someone else comes up with a winning design - or that goes further on a charge etc. That's the gamble. In the meantime - Tesla is killin' it. Are they the Apple of the auto industry?
|
It will never happen with the Big 5 automakers. It works for Tesla just like it did for Apple. They were the underdog and they came out with something out of the box, and tons on innovation, that the Big Guys won't do cause they are to blinded by their size.