Once cars are self driving, and that will happen sooner than many think, car ownership will become a thing of the past for most, as they can summon someone else’s car and pay per mile. If Tesla has a fleet of cars out there, they can disrupt Uber and the likes.
For those who can afford or a car or want one, rather than it being a quickly depreciating asset that sits stationary 95% of the time, it then becomes a revenue generator for the owners. This changes the Tesla business model, as they can then layer services on top of it.
And if you do own a Tesla, you can then add in power wall and solar roof tiles from Tesla, become carbon neutral, charge your revenue generating Tesla free of charge and most likely even charge electricity back to the grid.
Obviously, there are others that may pursue a strategy like that, but all other car manufacturers seem themselves still like that, they are just electrifying the fleet without a broader vision beyond cars.
In spite of all that, their recent valuations have been bonkers. Based on hype, the cult of Elon and not so much on reality.
I don’t think that is gonna happen soon. Aside from the self driving being harder to solve that most commentators seem to think. I don’t want to summon some random car, and I don’t want anyone else summoning my car. I’m also sceptical of the claims that self driving taxi’s will be any cheaper than taxis with drivers. They will need frequent maintenance and cleaning and may well get abused more than an ordinary taxi
I didn’t say “soon”, I said “sooner than many will think”. People seem to think this is a far away dream, it’s not. A decade before they start to become common place doesn’t sound like a lofty ambition, given what Google is doing. Sounds like a long way away, it’s not for something so disruptive.
With regards to whether you want it or not, there’s lots of things people didn’t want, until it actually arrived.
in-built cameras / insurance - Unlike AirBnB, a Tesla car records video evidence of every person who goes near and inside it. If vandalized, people will get caught.
And also, 7 years ago critics thought that street electric car charging stations would b vandalised, this isn’t actually happening in reality.
It’s a fundemental shift in our behaviour and the way we see and own things.
When Ford is shutting down its factories and drawing on credit lines, Tesla has raised a lot of money at over $760 a share (lucky timing) and is continuing with production in Fremont, CA (while it can) and China.
This is one of the several huge defining moments for Tesla and Elon.
He also said recently Tesla and SpaceX can produce ventilators for hospitals.
Tesla, the Bay Area’s largest manufacturer, has greatly reduced the number of workers coming to its Fremont assembly plant, though it’s not clear if the cutbacks put it in full compliance with health orders Alameda County and five other Bay Area counties imposed Monday to stem the spread of the coronavirus.
Of Tesla’s 10,000-person workforce at the Fremont factory, roughly three-quarters are not showing up to work after the company said workers could take paid time off if they were ill or had concerns over the coronavirus.
Sgt. Ray Kelly, a spokesman for the Alameda County Sheriff’s Department, said that he has been in talks with the company throughout the day and that the situation was not fully resolved.
“We still need to get to minimum basic operations for the car production,” Kelly said. The county order allows nonessential businesses to continue in limited operations to preserve their businesses.
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GM, Ford and Fiat Chrysler are closing plants outside California, the Associated Press reported Wednesday.
I’m very happy with my investment too. 10 orders a minute in China apparently. Not sure they will hit guidance on earnings call in 14 days or not but either way I’m holding and buyjng more in dips.
part 2 - all aboard.