Why many still get Tesla wrong
Every week somewhere, a new skeptic comes out of hiding and sharing their insight into why Tesla is terrible—driven by the large stock value gain over the last year.
You hear the same arguments from those "experts":
Tesla is worth more than any other car company globally, while they are only selling a fraction of the cars others do.
While Honda and Toyota have a multiplier of 0.5, Tesla is rocking a 15. Based on EV / LTM Revenue
Tesla can also be no software company because they need to sell you a car first.
It's not profitable, and if it is, then only because of the certificates they sell (climate).
Robinhood and "stupid" investors have increased stock prices.
But they fall short in many regards. It isn't surprising that creating a massive physical and complex product is capital intensive. It requires large sums of investments and a great deal of innovation.
That it was even possible so late to enter the automotive industry given all those established brands is an achievement on its own.
And shows how behind the industry is and how actual disruption and re-thinking looks like.
But the main point is how people don't get the business model right. Putting Tesla in the basket of VW, Toyota is falling short.
Tesla is in the race for autonomous vehicles and what they have done in that space is outstanding. Instead of thinking from the car and car sales. It would help if you thought about the autonomous vehicle side.
They invested in creating cars as a means to gather data to create an advantage. Every day, Tesla gains ground by having more sensors on the street, pulling them ever so close to the actual game changer.
Imagine how many mobility topics we have from parcel delivery to the taxi industry. Getting into this segment with a working product is what the stock market reflects.
In the current AI space, data is more important than a brilliant new algorithm. With topics like Deep Neural Networks, the foundation is here, but the information is missing. Tesla investing in gathering the missing piece is what will make it all happen.