Read on Twitter
1/ Why #Tesla will be much more successful than #Apple, and much harder to compete against.
I am still admiring #SteveJobs and the great #Apple success, while I think #Telsa will have much greater success than Apple. This will have huge implications to $TSLA and competitors.
I am still admiring #SteveJobs and the great #Apple success, while I think #Telsa will have much greater success than Apple. This will have huge implications to $TSLA and competitors.
2/ It is easier to understand this from #Apple’s own loss of opportunities or strategic mistakes (Only IMO) over the last 10+ years:
. Chose to make iPhone exclusive only for ATT, leading Verizon and other caries no choice but to power the rise of #Android.
. Chose to make iPhone exclusive only for ATT, leading Verizon and other caries no choice but to power the rise of #Android.
3/ Delayed the large screen phone for years, leading to the rise of Samsung/competitors.
. Chose to keep iPhone at high price (& profit), leading to the rise of Chinese phone makers like Huawei, Xiao Mi etc. They are really good now, many of my friends in China switched to Huawei
. Chose to keep iPhone at high price (& profit), leading to the rise of Chinese phone makers like Huawei, Xiao Mi etc. They are really good now, many of my friends in China switched to Huawei
4/ . Chose to keep MacBook Pro and other products at high price (& profit), leading to only small market share of the TAM.
. Sell expensive HW but give SW free; instead should sell the HW cheaper to reach more customers, while charge small monthly subscription for the Apple SW
. Sell expensive HW but give SW free; instead should sell the HW cheaper to reach more customers, while charge small monthly subscription for the Apple SW
5/ . Apple outsources its manufacturing to other companies, where competitors can have access in most cases.
6/ Much slower speed of innovation in recent years, the annual releases of product feels similar to annual ICE car refresh, with selected innovations, while pacing the other features in following years.
IMO many of the above decisions were mostly driven by “profit” thinking
IMO many of the above decisions were mostly driven by “profit” thinking
7/ Now Tesla, what differs
1. Elon and Tesla’s mission is to accelerate the world's transition to sustainable energy, hence his first motivation was never money or profit. The right mindset is the foundation of everything.
1. Elon and Tesla’s mission is to accelerate the world's transition to sustainable energy, hence his first motivation was never money or profit. The right mindset is the foundation of everything.
8/ (Although like we all know, when you are doing the right thing, other things tends to take care of itself, including $TSLA stock price).
9/
2. Tesla’s products are improving at all fronts at a very fast pace, while price is constantly dropping. I don’t think I have seen any other product in my life like Tesla, a PREMIUM product selling at an ever cheaper price, and the products get better with OTA SW upgrades.
2. Tesla’s products are improving at all fronts at a very fast pace, while price is constantly dropping. I don’t think I have seen any other product in my life like Tesla, a PREMIUM product selling at an ever cheaper price, and the products get better with OTA SW upgrades.
10/
3. Vertical integration. Tesla builds the machines that build the machine, instead of outsourcing the whole manufacturing to other manufacturers. That is much harder for competitors to have access, copy and catchup.
3. Vertical integration. Tesla builds the machines that build the machine, instead of outsourcing the whole manufacturing to other manufacturers. That is much harder for competitors to have access, copy and catchup.
11/
4. SpaceX factor. The SpaceX talent helps Tesla, and vice versa. We are talking about applying rocket science here:) Plus, every time a SpaceX rocket or Starship is launched, it reminds people being a customer of Tesla is SPECIAL!
4. SpaceX factor. The SpaceX talent helps Tesla, and vice versa. We are talking about applying rocket science here:) Plus, every time a SpaceX rocket or Starship is launched, it reminds people being a customer of Tesla is SPECIAL!
12/
5. Tesla Cult. I have been an Apple fan boy, but that was nothing comparing to the Tesla fans, many of them spent hours every day researching, posting online and pass around the words to others.
5. Tesla Cult. I have been an Apple fan boy, but that was nothing comparing to the Tesla fans, many of them spent hours every day researching, posting online and pass around the words to others.
13/
No wonder Tesla does not need to do any marketing campaign and their customers already “think different”.
6. Sensor of humor. The Easter eggs in Tesla car, Elon’s colorful comments once a while, short shorts, 420.69, or soon 694.20. Many people love it!
No wonder Tesla does not need to do any marketing campaign and their customers already “think different”.
6. Sensor of humor. The Easter eggs in Tesla car, Elon’s colorful comments once a while, short shorts, 420.69, or soon 694.20. Many people love it!
14/
It will be very hard to compete with Tesla, a company that is,
. Innovating at an accelerating speed, at so many fronts (FSD, battery, advanced manufacturing, AI chip, OTA SW, Auto, Storage, Solar, Super Charger, insurance, eAirplane & coming flying vehicles.
It will be very hard to compete with Tesla, a company that is,
. Innovating at an accelerating speed, at so many fronts (FSD, battery, advanced manufacturing, AI chip, OTA SW, Auto, Storage, Solar, Super Charger, insurance, eAirplane & coming flying vehicles.
15/
. So vertically integrated
. Having access to the best engineers and talents
. Has such as big TAM and can step into adjacent markets or not so adjacent (like insurance)
. So vertically integrated
. Having access to the best engineers and talents
. Has such as big TAM and can step into adjacent markets or not so adjacent (like insurance)
16/
. Have a loyal cult following and customers base, which is once a while refreshed by the OTA SW upgrades, or Elon’s tweets, or a Rocket launch!
. Have a loyal cult following and customers base, which is once a while refreshed by the OTA SW upgrades, or Elon’s tweets, or a Rocket launch!
17/
Even the highly competitive Chinese manufacturers will have a hard time competing with Tesla with lower price, although I think Chinese Government was really smart to invite the “Shark” in and help local companies compete and grow the whole EV supply chain.
Even the highly competitive Chinese manufacturers will have a hard time competing with Tesla with lower price, although I think Chinese Government was really smart to invite the “Shark” in and help local companies compete and grow the whole EV supply chain.
18/
That is why I strongly believe #Tesla will be much more successful in the next 10 years than the great #Apple success. Thanks for the chart @HalloFeld!
That is why I strongly believe #Tesla will be much more successful in the next 10 years than the great #Apple success. Thanks for the chart @HalloFeld!
