Tuesday, January 9, 2018

Tesla's Future

I was watching two analysts on CNBC discussing whether or not to buy stock in electronic car company Tesla's stock. One said the company was a buy and the other side said it was a sell. The analyst who indicated she would sell made the point about Tesla's recent production issues. Tesla CEO Elon Musk has been very candid about being in production hell, and they missed their production goal again. The analyst referenced this and said she would stay far way.
Now I certainly understand her reasoning with the issues Tesla is having with production, but do you really think Tesla and Elon Musk won't figure this out? Of course he will because the great one's always do. Remember Musk has launched rockets and challenges Boeing to see who will get to Mars first. That's big talk.
My belief is that Musk sets high production goals with no real certainty that they will reach them, but that's not bad. Setting high goals makes you push harder and stretch yourself. This is part of what Musk does that I admire. He makes what seems to be outlandish statements but he does it to challenge himself and his team to reach their best. Musk is willing to look like a fool in the beginning to become a genius at the end.
One major thing Tesla has as well are the true believers. These are the people who believe in what Tesla is doing and will be willing to wait years. To a lesser degree we've seen this happen with Apple. They have their believers too who order new iPhone's months in advance or are willing to wait a couple months for theirs because they get a new iPhone every time. Remember the MAC wasn't a huge hit when it first was launched, but Jobs and Apple had true believers. When you have customers that not only want your product, but also believe in your message they will never leave you.
Tesla is going in that direction. They will get the production issues figured out over the next several years and challenge the big automakers to shift more towards electric cars and Tesla will become one of the great disruptors in business history. If they aren't already.

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