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Old 12-03-2016, 01:42 PM   #208
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From an investor perspective, I'm not so sure TSLA is going under.

The reason lies behind the gigafactory that TSLA owns. TSLA is not betting on becoming a dominant player in the car industry, but rather the absolute requirement of EV: batteries.

By pricing Model 3 at or near its cost (assuming it's not willing to lose huge amount of money), it creates the economy of scale it needs to sustain such a gigantic battery production. Furthermore, it's betting that by doing so, it would attract major players in car industry to join suit (which it's clear that it's having effect)... and it would benefit itself as a major battery producer down the road.

Panasonic/Tesla collaboration already positioned themselves as the largest battery producer in the world. Its single production is roughly no.2~4 combined. If all vehicles were to switch to EV based, it's in a great spot.

If you look at TSLA products and acquisitions, you can see that it's not looking to expand in car industry, but rather additional usages of its batteries. Solar City is a great example: you can generate whatever amount of electricity... but you ultimately need somewhere to store it - TSLA batteries.

Full disclosure: I have no TSLA position and no plan on doing so.
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