Despite the many risk outlined here, Tesla is attractive in following ways:
- No major existing car companies are purely electric. Ford, GM are passive players in this market due to regulation or organizational structures or inertia. Some of them are still touting a good year of pickup trucks. Some might bet elephant can dance, I’d bet against inertia.
- The next revolutionary production system might be fully autonomous factories. Instead of the one outlined by the Toyota book which focused on people, making people happy, productive, responsible with rapid feedback loop etc. Tesla could be the one considering Foxconn could do it.
- It’s the only company that has invested significantly in charging infrastructure (capital expense with future competitive advantage)
- None of them are competing on autonomous driving systems or infrastructure. This is simply a new dimension. Gimmicky for now, but possibly disruptive in long term.
- Musk is the face of Tesla, as who is the face of GM, Ford, BMW or Mercedes?