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Few investors understand the enormous difficulty involved in switching from manufacturing ICE vehicles to EVs. Tesla has widely automated their vehicle manufacturing facilities, which has resulted in substantially higher operating profitability than its larger ICE vehicle competitors.

An example of Tesla’s manufacturing innovation is its use of giant mechanical presses that can save substantial manufacturing time by forging single car bodies and individual car panels alongside its near-fully automated production with little human handling from beginning to end. Tesla’s different approach to auto manufacturing starts with single ... See more

Tesla recognized the complex supply chain in the automotive industry and revolutionized it through vertical integration across its factory, including battery and electric motor production. At its recent AI day, Tesla revealed its in-house AI training chip (called the D1 Dojo chip). The chip, based on itself, would be ranked in the top 10 super comp... See more

If interest rates begin to rise or we see a post Covid-19 global slowdown, these automakers may struggle to make interest and debt repayment schedules while borrowing additional debt to fund its plans to rapidly build out their EV infrastructure and compete with Tesla. This issue raises major concerns for the survival of these traditional auto bran... See more

In 2019, Bloomberg surveyed 5,000 Tesla Model 3 owners. The survey revealed that 99% of Tesla owners would recommend the car to a friend, and 98% would buy the same Model 3 vehicle again. The results of this survey suggest that every customer an ICE manufacturer loses to Tesla is unlikely to return to their brand (at least until they can produce a ... See more

Tesla is by far the most advanced in releasing an FSD package, announcing in early 2020 that it had completed over 5 billion kilometers of testing under autopilot, against just 2 million miles over the past two years by its nearest competitor Waymo (backed by Google).

Elon Musk explained his commitment to the Model 3 launch, when he said: “The reason I slept on the floor was not because I couldn’t go across the road and be at the hotel, it was because I wanted my circumstances to be worse than anyone else at the company on purpose. Like whatever pain they felt, I wanted mine to be worse. That’s why I did it. And... See more

History is littered with examples of incumbent leaders who do not adapt to shifts in innovation from its competitors. Nokia’s failure to respond to Apple’s smart phone technology is an example.