I’m no one to say this or to be listened to about this. But…
https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me
Tesla’s first Master Plan focused on the acceleration of the transition to sustainable mobility through electric cars.
In 2016, Tesla released their Master Plan Part Deux. And, by design, it was no longer a car company. It was from that point on a company focused on the transition to sustainable energy.
I am sensible to those who argue that Tesla is, ultimately, a software company. A software company that makes its own hardware.
Apple can also be seen as a software company that builds its own hardware. Namely desktops, smartphones, tablets and other devices. The price ranges of Apple’s hardware can go from just under £100 to several thousands.
Tesla’s hardware has higher price ranges in comparison. Cuz they’re different products after all. Their hardware include, not only vehicles used to transport goods and people, but also both energy production and energy storage devices.
On the energy production side, Tesla offers solar based solutions. On the storage side: batteries. Both static and mobile batteries. As static batteries we have things like the Powerwall, Powerpack or the Megapack. As mobile batteries Tesla have an increasing diversified range of, wait for it… cars. Tesla’s cars are not only cars, but batteries on wheels. And if that was not enough they are also software carriers and data gatherers and feeders on wheels. So much so that Tesla is now entering the insurance business.
https://www.businessinsider.com/tesla-planning-insurance-product-2019-4?r=US&IR=T
[Edit 1:] Enough whining.
What will this move imply for the insurance sector? How will Tesla go about it? I don’t know if this move will have an impact as disruptive as the choice for a direct sales approach had for the legacy distribution model. But will have impact. And I wouldn’t be surprised if other car manufacturers ended up replicating it as soon as they collect sufficient data, which would increase the impact. This is obviously speculative. And so it is what follows. In order to offer its own insurance Tesla may need to partner up with some re-insurance provider, at least at the beginning. Nonetheless, I wouldn’t be surprised at all if in the near to mid term E. Musk were to announce Tesla acquired an insurtech. Why? Well, they did buy Maxwell and Hibar despite their partnership with Panasonic didn’t they?! Same principle applies. The question is, will Tesla want to go into the re-insurance business too? In any case, it can become a strong revenue stream for Tesla, providing what W. Buffett calls float, that then Musk can re-invest in the business.
And then, there’s the Automation, robo-taxi services thay may arrive one day as we can see in @engineer post. If sucessful… OMG. [End of Edit 1]
[Edit 2:] I see E. Musk building a mixed conglomerate with integrated components. These components can work together as a team, despite and because they pursuit different but complementary purposes. In five to ten years, I see changes in the corporate structure with the creation of an umbrella company, under which we’ll find Tesla, Space X, The Boring Co, Starlink and the ones to come. Think of Google becoming Alphabet. Apart from Tesla all other Musk’s ventures are privately held. I don’t see an impediment for such a structure. It is possible he has organised himself in such a fashion. I don’t think this would impact Tesla’s price or value as a public company, but hey anything can happen. But I do see Musk, in the mid to long term, as CEO of the umbrella company, with several COO’s appointed as soon as the companies reaches cruise speed. Don’t forget I may be mistaken please. [End of Edit 2]
I believe you get the picture. I am going to stop now because I just want to cry for I don’t have enough money to buy Tesla’s shares and for that reason I’m not a shareholder, hence I don’t have skin in the game. But if you ask me if I consider the stock to be cheap, expensive or just right, my answer couldn’t be more clear than this: I don’t have the foggiest idea