A Bull Case for Tesla is Increasing Operating Leverage

Rob Mauer of Tesla Daily provided a bull case for Tesla to Northwestern University Masters Students.

Tesla has grown revenue over the last four years by 250% but only increased operating expenses by 85%.

The cumulative electric vehicle targets of Volkswagen and other legacy car makers totals 10% of all vehicles by 2030. If complete electrification of cars happens by 2030 then 90% of the market is left to Tesla and some new Chinese electric car makers.

If you do look back at Tesla’s car production, Tesla has been growing vehicle production at a compounded annual rate of 50% per year. This has been the historical growth rate.

2:21 Background on Tesla Daily
3:52 Bull case presentation begins
7:16 Tesla’s lead in electrification
10:43 Tesla’s lead in autonomy
12:53 Tesla’s lead in energy
14:30 Is Tesla overvalued?
26:35 Competition has completely given up the market
28:37 Beginning of question and answer section
30:39 Will infrastructure scale fast enough?
33:33 Will people really want to share their vehicles for ridesharing?
36:36 Is Tesla prepared for supply and battery constraints?
40:58 Does The Boring Company come into play for mining?
41:53 Will Tesla’s innovation slow down as they enter a higher volume phase?
45:35 Is Tesla’s lack of advertising sustainable?
48:03 Who is a legitimate competitor to Tesla?
53:12 Thoughts on Rivian and partnerships?
56:05 How did you feel during the Cybertruck unveiling?
58:20 What are your thoughts on the new Roadster and will you be purchasing one?
1:00:46 Is Tesla’s executive turnover a concern?
1:04:29 Do you own a pair of Tesla short shorts?
1:05:00 Any thoughts on TSLA’s stock split?
1:06:55 How have you looked at Elon Musk’s actions and legal issues the last few years? Do you think he is comparable to Steve Jobs?
1:10:00 What do you think Apple’s ambitions in the space are?
1:11:58 What is your background?
1:13:15 What do you think keeps Elon Musk and Tesla’s management team up at night?

SOURCES- Tesla Daily
Written By Brian Wang, Nextbigfuture (Brian owns shares of Tesla)