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by realtalk_sp 2157 days ago
They don't have any significant monopolistic advantage and they're operating in a highly price-sensitive, competitive market.

My personal theory is that Musk knows this and his real objective is to provoke car manufacturers into competing on electric. From Musk's point of view, the win is likely not Tesla making any significant amount of money for shareholders but instead it driving the whole market towards electric, thereby achieving the "real" objective of lowering emissions.

Many of his behaviors over the years suggest this could be the case: publishing a 'master plan', releasing Tesla's patents, noting the stock price was "too high", and sinking all of his PayPal money into SpaceX, Tesla, and Solar City (and then borrowing to pay his rent).

2 comments

I'm pretty sure musk had literally said this is not your theory. that's why there was there patent stunt. It not some plot rather being the change you want to see, a even if Tesla collapses they moved the EV needle.
I can assure you that Musk has at no point intimated that Tesla is not a worthy investment and that he's not interested in profit maximization. He has only ever hinted at this peripherally, as described.
Yes, this is exactly my point. Thanks.
Musk's only compensation for Tesla is related to share price. He is therefore doing everything he can to take a large market share from the incumbents - they have had 8 years to respond to the Model S, and have done nothing.