Tesla, The QWERTY Keyboard, And Winner-Take-All Potential

Summary:

  • This article argues that the current sell pressure is only temporary and that Tesla still offers a winner-take-all potential in the long term.
  • Two of the key catalysts to this potential are its recent battery development and FSD technologies.
  • Both technologies help to create a win-take-all potential in the EV future that could be similar to what the QWERTY keyboard did.
  • For batteries, the current lack of standardization offers a window for one player to dominate.
  • For FSD, especially when combined with enhanced batteries, it’s such a highly nonlinear technology with so many higher-order benefits to come.

Tesla motors showroom with cars and illuminated logo branding at dusk London UK

AdrianHancu

Thesis

Readers familiar with my writings know that I hold the following truth to be self-evident in investing: linear thinking does not apply to nonlinear stocks like Tesla, Inc. (NASDAQ:TSLA). Although anticipating nonlinear effects is hard – to say the

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TSLA’s 2022 Annual Meeting of Stockholders

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TSLA Battery Day presentation

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TSLA Investor Presentation


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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