As an investor in Tesla stock you have to be both good at predicting Tesla’s success as a business (its ability to produce good, profitable cars) and at predicting Tesla’s stock price level before it turns profitable. Even if you get the first one right, if the stock price declines before Tesla gets to profitability, your interest in the stock may be severely diluted.
Even if Tesla fails as a business it has succeeded in creating an incredible public good: It has changed the auto industry forever and global geopolitics too. Just think about one side effect: oil. The geopolitical policy of this planet in the latter half of the twentieth century was completely dictated by oil, and wars were fought over it. Electric cars need electricity, but they don’t demand oil. Electricity can be made out of anything – wind, solar, hydro – the “clean sources” that are less toxic to the planet; and yes, it can be made with nuclear power, coal, and natural gas, which are less clean but less scarce and thus less geopolitically important than oil. One company has helped to change the balance in that complex energy equation. Thank you, Tesla and Elon Musk.
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