Tesla is as polarizing as it gets when it comes to stock investors.
You either love it or you troll it.
In face, it’s one of the most shorted stocks ever, on track to be the first stock to break $20 billion in shorts.
For the uninitiated, that means that more people have tried to bet agains the success of Tesla than almost any other stock, ever.
There’s even a name for that group, TSLAQ.
These are the short sellers, haters, trolls, and skeptics that love to spew criticism towards Tesla and Elon Musk.
One time-tested scenario is that if you are at the top, you will always have a target on your back.
It doesn’t even matter if you’re building the world’s best electric vehicle or landing rockets back on earth, people are going to hate on you.
I don’t own a Tesla, but I’ve driven a few and plan on owning one in the post-pandemic future when driving actually matters again.
Driving a Tesla for the first time is really similar to when I used the iPhone for the first time.
Every other phone just felt primitive and every other car just felt old school – immediately.
That was the point I knew Tesla was special and why I believed they would be a key architect for the future.
Tesla is the next Amazon.
Why You Should Bet on Tesla
Everyone Who Owns a Tesla Loves It Dearly
As a product guy, I like to bet on products and companies that are able to trigger cult followings.
To this day, I have not met a single person who has owns a Tesla and was anything short of being madly in love with their car.
And not only that, they’re not shy about it either.
It’s not a kiss and don’t tell type of deal.
It’s more like you’re dating the prom queen and the world needs to know.
Tesla owners are fanatical, urge their friends and famiily to get one, and can’t wait for what’s coming next.
It reminds me of Apple, duh. (Full disclosure: I’m an Apple fan too)
At the end of the day, creating or providing something that people love is the top goal for every company.
And when you see every single customer become a happy customer without fail, that’s a powerful signal.
Bet on Tesla.
The Future is Electric Vehicles
You need to be a genius to build electric cars, but you don’t need to be one to know that they’re the future.
The planet is going to depend on that future because they’re clean.
The days of gas guzzlers will not last forever.
Assuming that you agree, that the future is in electric vehicles, then you need to accept the reality that Tesla is dominating that segment.
At this point, I don’t think it’s a matter of whether or not Tesla will be around in 10-20 years, it’s really about how much market share they’re going to get.
According to Tesla’s biggest bull, Cathy Wood, fund manager of a high flying fund ARK Invest, thinks Tesla could hit $15,000 a share by 2024 in an all out bull case and $1,500 in a bear case. We’re already at $1,500 🙂
“Our confidence level that this stock is heading for $7,000 over the next five years is very high,”
– Cathy Wood, founder and CEO of Ark Investment Management
Bet on electric vehicles.
Autonomous Vehicles Will Be The Norm
It’s going to happen.
Fully autonomous cars will be the norm at some point in the next 10 years.
It could even be sooner and it wouldn’t surprise me one bit, considering how fast things can change in this world.
It’s already a bit surreal to half semi-autonomous cars on the road.
This is the type of shit you see in movies and it’s happening right before our eyes.
The laws and regulations may be a bigger hurdle than the technology at this point.
Tesla has a big lead in this area as well since they’ve been at this for awhile.
Bet on autonomous vehicles.
Elon Musk is the GOAT
200 years from now, historians are going to study Elon Musk like they studied Einstein, Edison, and Tesla. (You like what I did there?)
Unless of course, Elon’s Neuralink enables him to live forever.
Either way, he’s going down as the Greatest of All Time. The G.O.A.T.
Over Gates, Jobs, and Bezos because of one simple reason.
Elon chose to solve all of the world’s biggest problems at the same time.
It’s mind boggling to think that he’s behind Tesla, Neuralink, SpaceX, and The Boring Company all at the same time.
Bet on Elon.
Tesla Has A Massive Headstart
Imagine if you were in a race with Usain Bolt and he gave you a 5 second head start in a 200m dash.
He’d still kick your ass right?
Now imagine if you gave him a 5 second head start.
He’d be done with his next meal by the time you hit the finish line.
Tesla not only is the leader in the space, they also have a massive headstart.
While other car companies are scratching their heads, Tesla’s next car is already on the way.
Bet on Tesla.
Tesla is Not Just a Car Company
You’d be short changing Elon if you thought Tesla was just going to be about cars.
Tesla is about energy and cars are just the beginning.
You can already see the plan in motion with solar panels, power bricks, and supercharging stations everywhere.
Similar to how Amazon looks like just the world’s best online store to most people, AWS came out underneath and walloped the cloud industry.
Tesla is the next Amazon and their energy business is the AWS equivalent.
Bet on renewable energy.
Take a look at this explanation by Chamath Palihapitiya, a well-respect billionaire, who says that Tesla could be a trillion dollar company. Yes, he said trillion.
Is Their Stock Price of $1,500+ too high?
No, it’s not.
We’re in a different era now.
Year’s ago, the thought of a trillion dollar company seemed unrealistic.
Now we have Apple and Microsoft worth more thatn $1.5T each.
We also have the Federal government printing unlimited money, which is accerating the rate of inflation and increasing the case for Bitcoin to become the world’s reserve currency – but that deserves another post.
Tesla’s market cap is still under $300B.
Of course when you compare that to all of the other car manufacturers combined, it seems like its too much.
But you have to look at the bigger picture.
This isn’t just the car company of the future.
It’s one of the most important companies to make a future possible.
They’re just starting to ramp up more and more production.
They’re getting closer and closer to fully autonomous vehicles.
Once they’re able to pull that off, they’ll be deploying a fleet of autonomous vehicles for ride-sharing.
At some point, they’re going to release a cheaper Tesla than the Model 3, perhaps a Model 2?
If you think you’re starting to see them everywhere now, wait untiil that happens.
So, add all of that up, and you can see why the bulls think that $1,500 isn’t that high.
This is the making of a trillion dollar company.
Place your bets. On Tesla, the next Amazon.