mercredi 12 août 2020

TESLA will have the monopoly forever on EV cars market

 The TESLA stock vomiting bubble assumes it has the monopoly of the EV cars forever. It looks like the germans aren't really decided to let it go and want a peace of it.

As of today, the german government offers up to 9000 euros subsidies for an EV car under 40.000 euros.

VW's EV Golf model did see an increase in sales of 39% in Europe (vs. TESLA's Model 3 which did sell 14% less in H1 2020).

Anyway, that is to say that TESLA and VW aren't even the no 1 seller of EV cars in Europe. Nissan-Renault is, with its EV Zoe model. Check this out.

TESLA stock bubble

I know Europe does not matter; China does, right? The future is there, Europe, US, etc. dont really count anymore... Check this article here, for now TESLA it looks like the number one seller of EV cars in China.

As a side note, I did went over this article which questions the "forever" monopolistic position of TESLA in the EV car market.

We did talk about the TESLA stratospheric market capitalization and the fact that it does not worth spending time to compare it with more traditional car companies but rather with other ego-sick led companies like Amazon (its older sister).

The idea is despite the bubble looking very impressive, it wont last forever; that might sound a bit dissapointing but except a guarantee from the Federal Reserve Bank that it will buy the stock at whatever price (which isnt impossible btw!), one day the stock will go down. When? I dont know and neither the others!

It is only in big tech that there is any discernible bubble and, as Tesla makes clear, it does look very bubbly.

How dangerous is it? It is relatively localized for the time being, it has been funded primarily by an over-lenient central bank, and is centered in assets perceived to have scarcity value. Many big tech companies have true monopoly power at present, and their valuations assume they will keep it. (To apply this to Tesla, money is put to work on the assumption that the company will always and forever be the only electric vehicle manufacturer; if the technology takes off, that will prove wrong.) 

I would add that not only these companies will keep the monopoly forever, but there is no risk associated with their monopolistic positions; and another one, demand for their products will last forever!

No shit; speculators proved wrong? I dont buy that!


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