Tesla: Growth Rate Is Pushing Its Value Higher And Should Continue

You're definitely right, Tesla has a lot of work to be done. When I look at Apple, I see a company that's acrrued a lot of value and their growth rate is enormous quite valuable and it's always a pleasure listening to your Tesla series

I've seen a lot of "value investors" disparage Tesla based on Tesla's earnings right now. But what these people do not grasp is the importance of growth. I saw the movie Social Network, if I recall its name correctly, that was about the early days of Facebook. If the movie is accurate, and in this regard I'm sure it is, Zuckerberg did not concern himself with revenue at all in the beginning. He was all about growth.

Value investing is something that best suits the labor, land and capital era. The information business is something where very large market shares are gained in astonishingly short periods of time. The revenue streams will take care of themselves.

Posted Using LeoFinance ^Beta

Summary:
In this video, Task discusses Tesla's growth potential and the importance of looking beyond traditional metrics like PE ratios when evaluating high-growth technology companies like Tesla. He emphasizes the significance of Tesla's ability to generate additional revenue streams through internet connectivity in their vehicles, with potential partnerships like offering Netflix in Tesla cars. Task also highlights Tesla's growth in the electric vehicle market, the importance of battery production for Tesla's overall business, and the scalability of their production processes leading to increased revenues and profitability.

Detailed Article:
Task delves into the significance of Tesla's growth trajectory, predicting that Tesla could potentially grow into a three trillion dollar company from its current market cap of several hundred billion dollars over the course of the decade. He compares Tesla's growth potential to that of Amazon and stresses the importance of understanding the growth rate when evaluating companies with high PE ratios. Task argues that traditional metrics like the PE ratio may not be suitable for evaluating technology companies in today's landscape, which is far different from the era when these metrics were established.

One key aspect Task discusses is Tesla's ability to monetize its platform beyond traditional automobile production. He highlights the additional revenue generated through internet connectivity in Tesla vehicles, charging $10 per year for internet connection and offering over-the-air updates. Task speculates on potential partnerships like integrating Netflix into Tesla's infotainment platform, creating new revenue streams akin to Apple's strategy of increasing service revenues.

Task also touches on Tesla's production capacity and the importance of battery production for both their automobile and energy storage businesses. He underscores the critical role batteries play in Tesla's operations and how increasing battery production is key to meeting demand and driving sales growth. He notes Tesla's efficient production process where everything produced is sold without inventory accumulation, leading to continuous growth and increased revenues.

Furthermore, Task emphasizes Tesla's position in the high growth electric vehicle sector, contrasting it with the stagnant growth in the overall automobile industry. He points out the increasing penetration rates of electric vehicles in European markets and the potential for growth as Tesla continues to scale its production and expand its market share. Task also mentions the upcoming launch of Tesla's semi-trucks as a significant revenue driver that could complement their existing vehicle lineup.

In conclusion, Task outlines Tesla's growth potential, revenue diversification strategies, focus on battery production, and scalability in production as key factors driving the company towards sustained growth and profitability in the future.