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)

12 thoughts on “A Bull Case for Tesla is Increasing Operating Leverage”

  1. It depends on where you as well as the technology available. I live in Alberta. Distances driven here tend to be greater than in the UK. I would certainly want a combustion engine & a tank of liquid fuel to take over when the battery gets low.

  2. OK .. Well I see no reason to believe that by 2035 we cant have full electric cars and totally remove the ICE component, still by 2025 we will have a clearer picture and the UK and other governments can reverse their decision or conversely accelerate as things become more clear.

  3. Something that would be perfect (or close to perfect) if we can get it, but it is uncertain we *can* get it.
    So just set up incentives to move away from fossil fuel, but if batteries are only good enough for plug in hybrid, don’t try to force people to use all electric.

  4. I think a lot of people are waiting for the trucks. Or hopefully a new model s/x. And better battery tech as well. I love my model 3 but I am always needing more range. Or chargers. And the buffet problem is needing more customization. Or different models. Everyone doesn’t want to drive the same model with 5 color options. If you don’t know tesla, at a quick glimpse it is hard to tell which car you are even looking at.

  5. “add hybrids to the banned list.”
    That sounds like making the uncertain perfect the enemy of the available good.

  6. Considering that there is a pandemic going on that has affected every aspect of daily life including commutes and the economy, I would say that they have been doing really well.

  7. EVs need new infrastructure too. More powerplants, better grid. If everyone plugs their cars in at the same time you can fry local transformers.

    I’m more worried that Tesla’s rate of car deliveries seems to have hit a plateau in North America.

  8. Transitioning to hydrogen is impractical because we’d need all-new infrastructure. Going all-electric can be done in phases. Tesla is making the breakthoughs with the batteries, and already has plans for solarizing the cyber truck to where it’s 99% useful off-grid.

    Come down a little on price, and the market will evaporate completely for all other vehicles. Tesla is poised to send all ICE vehicles to the glue factory. 100 years ago when this happened, Ford had over 60% market share. It’s hard not to be bullish on Tesla. This is huge, and possibly one of the biggest tech disruptions of our lifetime.

  9. Which itself is based on the flow of politics and history like my country UK where
    Like several European countries, the U.K. had already committed to phase out the sale of gasoline and diesel by 2040. But the new plan would bring that date forward by five years (2035) and would also add hybrids to the banned list. It was announced by Prime Minister Boris Johnson at the launch of the COP 26 conference on climate change in Glasgow, Scotland Feb 2020
    Its speculative 2030 but its not just .. so you say .. evidence in the real world shows its a reasonable though not certain speculation.

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