In the third episode of the techAU.Tesla podcast, I focus on my recent purchase of Tesla Stock.
Before we get much further let me tell you the following is not investment advice, do your own research, this is just my story and my opinion of the company.
After reporting on the company for more than a decade, after reviewing the Model S back in 2016, the Model X back in 2018 and then going on to buy (and review) the Model 3 in 2019, I finally decided to invest in Tesla shares.
Why did I invest?
Since going public the price of Tesla stock remained flat for many years. That was until the more affordable Model 3 production started ramp. As the number of units dramatically increased year on year, Tesla has been able to start realising profits.
As the Model Y soon followed, sharing many of the same parts and appealing to an even larger market segment, the company again scaled production.
One of the most important factors was the Gigafactory built in Shanghai, China on a really aggressive timeline. From breaking ground, to producing Model 3s in around 15 months. The factory almost doubled in size and has now added capacity to build and delivery Model Ys, along with the recent news RHD cars were also coming off the line for other markets (like Australia).
Armed with this experience of building factories and improving each time, Tesla are constructing Gigafactory Berlin and Gigafactory Texas simulatenously, both due to start producing vehicles this year.
New from these factories will be the Cybertruck, which seen more than 600,000 reservations, along with the Tesla Semi. This is the first move into commercial transport for Tesla and has amazing potential to disrupt a whole new industry and capture significant market share.
Of course this is without even considering the potential revenue to be realised from FSD purchased by owners (now priced at A$10,100). Once Tesla enables the robotaxi fleet, they’ll unlock the potential to take 20-30% from ride sharing, given there’ll be an extra seat available and no driver to pay.
If Tesla can make vehicles fast enough to keep some for themselves, the’ll then have an up-front capital cost of making the vehicles, but then have a vehicle at the wholesale cost, and can then take 100% of the revenue from ride sharing.
This doesn’t even touch on the energy side of the business, which includes Powerwall, Powerpack,