Quote:
Originally Posted by KRS_SN
its a niche product of course it will show growth. If you plot the graph of quorn or vegan burger growth in sales from 2000 to 2020 you probably will see a similar graph growth means nothing not going to replace sausages  |
Apple started with desktops
Amazon started with books
Netflix started with DVDs
Google started with a search box
The "niche product" argument works until it suddenly doesn't ...
... and that point usually comes once the infrastructure for massive expansion into new markets is put in place like, say, by simultaneously building enormous factories on multiple continents, creating 2 new products for different markets (cybertruck, semi), and THEN telling everyone you're spending another $12B to build more infrastructure.
Tesla is in the hypergrowth stage and will invade every niche including as a BEV parts vendor, especially when it comes to batteries ... which coincidentally is exactly what Amazon did: sold B2B services to legacy businesses (e.g., Target corp used to white-label Amazon for online sales) that enabled Amazon to build their global scale delivery and logistics infrastructure - eventually Target realized they were fucked but by then it was too late. Almost killed them.
What's happening in the auto-market is new technology is disrupting everyone and Tesla has the jump on all of them since they're built from the ground-up for the new tech.
Another example is Google - in 1998 online ads used to be a niche product too ... which is probably why advertising conglomerates justified snoozing while Google built the best internet-native ads engine on the planet ... And because google had no legacy ads business to worry about, they put 100% of their focus into online ads and now their problem is counting their $40 billion of yearly ads revenue which started out as a niche product.
It's no guarantee for Tesla, but Tesla, its products, and its competitors are tracking 100% with previously disrupted companies and industries ... which is why their stock price is so high.