I actually know somebody who did this but for AAPL many years back. At the time, I too thought he was insane, but it worked out very well for him. A propos TSLA price, the problem is they are about to face a lot more competition from companies with sophisticated, established, distribution networks, etc.
Apple had lots of competition from companies with sophisticated, established, distribution networks, etc. Compaq, Dell, IBM, HP. Apple had to build the Apple Stores.
Also, the car companies have legacy issues handcuffing them. Unions, dealership agreements.
Not saying Tesla can replicate Apple, but Apple didn't have it easy.
This is exactly what I think. They did a very good job capturing the early market given the void left by traditional auto makers.
The next 5 years will be very tough. They will be competing on the efficiency of the production chain. Toyota and Volkswagen are unbeatable at that game.
Regarding your story with AAPL: Good for him but how many others will we never hear about? Betting everything on a single stock is the number one mistake that amateur investors make.
It's not just about mass producing an EV though. It's also about the software and tech, and building not just a moving battery pack but one that comes together well with the software, self driving tech, and a supercharging network will be where Tesla will have an advantage for many more years to come.
I don’t think it’s too much of a stretch to say that Tesla is a software company the same way Apple is a software company. They don’t make their money selling software, but their software is a huge reason they are making money.
There is a heck of a lot of software in that car and in all the infrastructure supporting that car. And unlike their competitors, Tesla doesn’t outsource it.
> Will Toyota have an EV available in numbers by 2024? I know they love their hybrid platform, and the fuelcell car, but I'm unaware of any EV plans.
FCEVs are as much EVs as BEVs, but yes, Toyota's first production BEV is being sold in Japan in 2020 with plans for India close behind. It's very much not designed for the preferences of the US market so I suspect we won't see it.
Given AAPL is at an all-time high they would've made money if they held onto it and not sold at a loss.
As most stock market indexes have a general upward trend, more people make money then lose. Though I still wouldn't recommend investing what you can't afford to lose or can put aside for the long term as you'll stand a better chance to make money if you can hold onto it through the downswings. Obviously you can still lose by investing in the wrong company, but you can mitigate your risk by spreading out investments over multiple companies/markets. There's a much lower chance of losing money on shares in the long term if you're sufficiently diversified.
