Tesla DisruptionOctober 14th, 2020
One point of interest for Tesla is their projected YoY growth rate. Elon Musk has stated 40-50% YoY.
Some analysts will point out that Tesla is unlikely to be the > 50% main player because 0% of anybody has ever been the main player for any length of time that would matter.
In 2018 ~80M cars were sold. I use this number because it's round.
If Tesla makes their cars better to last longer, less cars need to be made.
If Tesla makes cars meaningfully more shareable, less cars need to be made.
If Boring Company makes tunnels that protect cars and roads such that they need less maintenance and cause no traffic, costs decline and cars last longer.
But for additional simplicity, let's assume the rate of reduction and the rate of interest grows at the same rate. So sales in 2030 are roughly 80M.
The question is, how many years does it take Tesla growing 40%/year to get to 80M at current production?
We start with 2020, 500K/year.
2033 39.685738663M near (~50%)
2034 55.560034128M (over 50%)
You get the idea. The "machine that makes the machine" is the product. The "machine" isn't the cars. It's the Gigafactory.
In order to achieve this, they need to be able to build new Gigafactory production capacity exponentially to increase car production exponentially.
They seem to have production under control. And Gigafactory expansion is definately going to be up 40% this year with Berlin, Texas, Kato, Shanghai expansion.
In fact, the 40% growth, may be much much higher. With the new factories going in place, they have some time to figure out the process and tune up for the next doubling over 2 years.
Maintaining 40% growth will be difficult. It will take a combination of building new factories, and expanding each factory.
Perhaps Tesla reaches terminal velocity before then. I guess time will tell.
I am TSLA Long. Model 3 Owner. Brother of a Model 3 owner. Son of a Model S owner. I have reservations for Slate Roof and Cybertruck. I am a Tesla speculator and fanboy. I am not a financial advisor. Investing in anything comes with inherent risk. Short NKLA (Aug 4 2020)
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