I wanted to hold off on writing about Tesla because they are so overplayed but I couldn’t resist. Elon is the man and is so obviously on track to lead Tesla to not just move the auto industry away from its oil dependence but every industry.
Tesla has massive long-term value because they will be the world leader in energy storage for foreseeable future. As an investor, I like to think only 18 months ahead maximum. Buffett’s is a bum. I don’t want to be rich at 80 if I can be rich at 40.
I almost feel stupid writing about why I think Tesla is a great investment because, to me, it is so damn obvious but here it goes.
- Unprecedented Demand – I mean really this is the only point I need. The Tesla 3 had 50K + pre-orders and still have a total of 500K. For reference, There were 320K Honda Accord’s sold in 2017. The Tesla 3 isn’t the only model. In addition to the Tesla 3, they are selling 100K+ units of the premium models they currently sell. This is the tip of the iceberg. They are so far ahead.
- Low production Costs: Tesla was in the news for over-automating their manufacturing process. I love it. Musk basically said how much can I really automate? He saw he went too far and then corrected. This means he will be able to sleep at night knowing he is using as much automation as humanly possible… LOL. Tesla is disrupting the Auto industry and they have the luxury of focusing all resources on creating a first of its kind automation factory. even if another manufacturer attempts to copy them who will work on it? I guarantee you the team won’t be as talented as Musk and his team.
- Young people want to go green: there are MILLIONS of 20 somethings who are more conscious about the environment than there parents. Even though going electric doesn’t really save the environment from fossil fuels it doesn’t matter for 2 reasons. One, people don’t know that. Two, there will be a difference soon. This is a longer term reason to invest but every year more and more people are going to want a Tesla because it is viewed as the best green alternative.
- Maintenance costs: the manufacturer and the owner virtually have no cost to maintain the car. A Tesla is in a different universe compared to its competitors. This will matter. More focused on making great cars Vs. keeping them running.
- Semi-Trucks: LOL?? What Semi Trucks?? Yes, semi-Trucks – Watch this video (this makes you realize how weird Elon really is) Admittingly, I don’t know shit about semi-trucks other than if you make a fist pump motion at the drivers they will honk. I do know that I’ve never seen trucks do anything close to what he describes in the video above. Fuck the haters who say he can’t do it. He will. No chance Trucking companies won’t jump on his model. Even if they may not be the sharpest tools in the shed.
Buy TSLA today and you’ll be balling like P Diddy in no time