[kumarvvr]

Tesla has pretty big moats around it's business.

1. Tesla can always enter into the ICE market with ease, not that they will do it, but they can and probably will succeed. The big 3 have had a lot of difficulty in getting into the EV market. Sure, they have competing vehicles, but lack the marketing power of Tesla. 2. Tesla is the new cool factor. Undeniably. People get mocked for driving a Prius. Owning a Tesla evokes a more positive response. 3. Tesla has it's supercharging network, which I think is a very smart move. That's a pretty big moat. 4. Tesla's marketing machine is immense and enormously efficient. I remember Elon writing a blog article about a journalists negative review of their car and the discussion about Tesla dominated social media for a few weeks. No one even bothers about the management at the big 3, but Elon is a celebrity who is given geek god like status.

[gamblor956]

1. Tesla can always enter into the ICE market with ease, not that they will do it, but they can and probably will succeed. ICEs are much harder than electric engines.

2. Tesla is the new cool factor. Undeniably. Tesla had the cool factor. Now they're 2 years away from being just another electric car.

4. Tesla's marketing machine is immense and enormously efficient.

99% of car buyers don't pay attention to social media when buying a car. Tesla has one of the smallest marketing machines in the industry; it's heavily reliant on social media to bring in buyers, which limits its customer base. Moreover, the reliance on social media is also its weakness, as it is subject to the whims of the online mob.

I remember Elon writing a blog article about a journalists negative review of their car and the discussion about Tesla dominated social media for a few weeks. No one even bothers about the management at the big 3, but Elon is a celebrity who is given geek god like status.

I remember that coverage as well. It was uniformly negative about Elon's blustering response to the review, and raised significant concerns in the market. If a single negative review is enough to tank Tesla, it's got no chance of surviving Model 3 mass production.

[calvinbhai]

Social media is good to generate and sustain hype, especially when Tesla itself is unable deliver the number of vehicles that have already been ordered.

Once Tesla has enough capacity to manufacture, more than what social media presence can consume, that is when traditional marketing mechanisms will make sense.

[Aloha]

It doesnt matter how cool their marketing is, if they cant scale their product manufacturing. You can't really sell a box of air, that is supposed to be a car.

[rjbwork]

I've been looking into buying an EV recently. The only thing comes close to anything I want is the Chevy Bolt. But, they don't seem to have launched a 2018 yet, it's a hatchback (which I don't want), and it's wildly expensive for the value delivered. I'd rather just get a Model 3/S honestly, even with the expense differential.

[brookside]

I wouldn't want a 3 because it isn't a hatchback. Hatchbacks are just so wonderful for transporting large items and even for sleeping the occasional night!

[snuxoll]

I love my Prius for this very reason, fold the back seat down and it’s got plenty of room for moving stuff around (being mindful of the max weight the car can reasonably haul) - if it wasn’t for my semi-purist nature when camping I’d seriously consider camping in it instead of pitching a tent.

[rjbwork]

Hmm you make a good argument...

[RcouF1uZ4gsC]

What was "cool" to the parent's generation is often considered "uncool" to the children's generation. That is why it is very dangerous to build a business on "cool".

[mschuster91]

> What was "cool" to the parent's generation is often considered "uncool" to the children's generation.

Yeah but the "parent generation" is the one which has the cash to buy a Tesla. My generation, unless made rich by bitcoin trading or stocks? Lol used VW junker it is.

For my generation, I'd bet that access to (autonomous?) car sharing will be the cool thing - and, guess what, Tesla has the upper hand there. Every vehicle transmits data back to homebase... and that data is why Tesla is so hyped and highly valuated, not the cars or the patents, probably not even Elon Musk himself.

They may sell the car at a hardware loss, but gain so much data for which they'd have to pay test drivers instead and still get a dime of the percentage they now get. Hell Tesla could close down shop today and I bet there would be waaaaay more than enough cash from companies willing to buy that data.

The only exception I can think of is Google with its Maps/Streetview cars as these have enormous, probably even better, sensors by design and in theory Google could get by just fine - but the amount of data is a blip compared to the miles already driven by all the Teslas out there.

Further adding to the value of Tesla is that they are trying (and often have succeeded) in breaking down the "dealership" structures... while the "old" car makers are more or less stuck to that structure (they don't want to piss off existing dealers), Tesla can react way quicker to demand.

edit: oh, and "modern" infotainment? App connections? Nothing the big car makers have to show comes even remotely close to what Tesla can do - their entire model is different. Digital services are at the core of any Tesla, so deep in fact that Tesla can dynamically "unlock" more capacity in the batteries, with frequent software updates - while even a top-notch VW has to visit a dealer to get a de-stinker firmware update. And don't get me started about the quality of the software in any non-Tesla car. No one comes remotely close to that level, and no one comes close in development speed/agility.

[Aloha]

Have you driven a Modern FCA, Ford or GM product? Their infotainment system is extremely impressive, and reliable (mostly).