I was forced to sit through a Presentation from a Wall Street investment dude this week who was convinced that electric cars are “Taking over the world because, they’re just better”.
This same guy predicted the US Fiscal deficit THIS YEAR would be $1.2 Trillion.. (I made a $100 wager with him that it would be below $1 Trillion).
He showed a number of countries.. like India... that are mandating all-electric cars by 2030.... puh-lease.
His kicker, ie: closing argument was: The HUGE DOLLARS invested in Tesla. SO MANY PEOPLE betting with their dollars CAN’T be wrong!
Except, when they are..
I can’t even remember the names of all the companies that never made a profit and went Chapter 7 (not 11) in 2001. You know, those amazing Dot Com companies that were can’t miss leading edge technology outfits?
In capitalism, consumers drive improvements and demand better technology, and their purchases drive company behavior. In communism, the government tells you what technology you will use and you will like it. Electric cars are the later.
Tesla investors don’t value the company on what its worth today, but what it might be worth in the future, if the stars align...because Amazon & Apple.
I saw an interview with Kevin O’leary (one of the billionaires on Shark Tank), where he was asked why he didn’t invest in Tesla. His answer was along the lines of “they build a product with 4 wheels that moves people around. In other words, its just a car company.”
I tend to agree with O’leary. Personally, my interest in what Tesla offers (alleged self driving, over the air software updates, save the world) is below ‘don’t care’...but I can’t ignore that there are legions of mind numbed millenials out there who want to save the polar bears. Just today, a question was floated on a Tesla board about when the almighty government should ban gasoline cars. One day, I might be outnumbered by these guys at the ballot box.