Many know the name Tesla. After all, it was one of the biggest stories of the stock market in 2020. It is also the single company that is changing the entire automobile industry.
This leads people to look at Tesla as a car company. While this is logical, it is missing a large part of the equation. In fact, in the long run, the car division might only be a small percentage of the overall revenues.
Elon Musk floated the idea of a better way to think about Tesla a few months back.
So what are the different companies that Tesla can be thought as:
Naturally we start with it as a car manufacturer. However, as we can see from this list, it is a lot more than that.
- Mobility Services ala Uber and Lyft
- Supercharging - fast charging
- Home Charging
- Autopilot - Self driving
- Solar Panel Installation
- Rooftop Solar Generation Tech
- Stationary Energy Storage
- Grid Services
- Stores in lieu of dealer network
They are embarking upon innovation within each of these realms. Presently, the company competes against existing organizations within those industries. While some are not mature markets yet, the different sectors are moving closer with each passing week.
Thus, if we look at Tesla simply as a car company, we are missing a lot of potential revenue streams which could grow exponentially.
The key is that it is involved in so much, with more likely to come. After all, it was only a few weeks ago that we learned about Dojo, Tesla potential exascale computer which pits it against the likes of Intel and NVIDIA.
This was an overlook development within the Tesla ecosystem. Usually, supercomputers are developed by organizations such as the Department of Defense or Energy. Yet, here we have Tesla playing in the realm which is usually dominated by governments and their near unlimited debt. Of course, this could become an enormous profit center when they offer the web services out to other companies who need that advanced computational power.
In short, Tesla's growth can continue at an insane pace simply because there are so many different realms they are playing in. Each can be leveraged to provide a greater return over time. There is also the convergence of many of these as we can see how they can overlap. For example, the more cars that are sold, the more infotainment subscriptions they can bill out.
One thing missing from this list is mining. It will be interesting to see how things unfold in this area. Tesla is already hinting at how it could end up acquiring some mining companies to ensure a consistent supply of the raw materials that are needed.
A lot do not want to believe that Tesla is a lot more than just a car company. As we can see it, it is about a dozen technology companies rolled into one.
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