re: Investing In Tesla

forget the software aspect of it. Tesla outsold every single brand in the $100k+ segment last year, what makes you think they wont do the same in lower end segments? That's a serious question, the model 3 has 600,000 pre-orders no bottom of the barrel car from mercedes,bmw,toyota,nissan, etc has ever had that type of demand. The demand was so rich that these people paid $1000 24-30 months in advance of delivery to secure a spot, big auto could only dream of that type of hype.

When you factor in tesla margins from direct sales vs the margins of big auto which rely on servicing cars and less on the actual sale of cars, you have to wonder why tesla is being grouped in with ford and gm when its shown significantly higher margins and elon musk has bonus clauses in his contract that include 30% gross margins, so he's going to do all he can to get them there.

I think when you look at tesla and see the cars + the supercharger network + tesla energy + self driving platform + tesla hardware as a service in a few years + any other brilliant thing musk has in store, the concept of getting all that for a mere $50B just bc profits dont exist now seems like the steal of steals to me. From a risk/reward standpoint you're talking possibly 50-75% downside and potentially 1000s of percent of upside and in the end thats what investing is, trying to maximize upside.

Is it the safest investment? No it isn't but Musk has done nothing to this point to make me doubt him, so Im willing to risk substantial money on Tesla not just surviving but completely dominating a decade down the line even though the profits aren't there today, the demand certainly is.