Should Tesla be a $1000 Share?
GM makes over 10 M, Toyota Makes over 10 M, VW Makes closer to 10 M...and Tesla's run rate??
Is it relevant?
Who makes money in the food chain of Automotive jungle?
From the Most profitable to the least...
- Oil companies: Exxon, Chevron, Etc
- Parts Manufacturers
- Services and Maintenance Providers
- Dealers (A recent study showed that an average dealer in USA makes over a million $ in profit)
- what is left goes to the Car Manufacturer.
Looking at Tesla's Ecosystem:
- Direct to consumer market eliminating the middleman
- Factory provided services
- A massive network of charging stations powered mostly by Solar
- And of course Giga F
- Tesla the Car Manufacturer
Other than the parts manufacturers : Tesla owns everything else.
And how can Tesla change the Range Anxiety?
They have already talked about Battery swap.
And with a solar powered charging stations every corner- Tesla can just give away the cars and make money on the batteries and charging!
Yes GM and others can produce cars- but they are way behind in building and owning the eco system for the Electric Model.
And that might be the reason for Tesla to hit $1000 may be not during this bubble....but does have the runway paved for its destiny