Fixated on high returns? How about risks?

‌$Tesla Motors(TSLA)$ ‌Questions about Tesla's narrative as a "company carving out a new industry" or simply just "competing for market shares in a traditional automotive industry":

1. Wouldn't the introduction of cheaper models risk cannibalising the other standard models?

2. If Robotaxis are thought of a replacement to car ownership (also in the namesake of TAM growth), shouldnt that also reduce overall demand for automobile, in turn affecting said company sales?

3. Trend of switching from ICE to EV: how about the competition between other automakers making similar shifts, chinese EV automakers with models that are cheaper and existing EV competitors?

In my opinion, announcements of robotaxis and rollouts of cheaper model is not conclusive of Tesla's ultimate success in revenue and cashflow growth - which are imperative in valuation. As usual adage goes "high reward, high risk”, investors may be fixated with the potential“high reward", but sooner or later, the market will also have to confront realities of high risk - the actual uncovering of results vs expectations *Case in point - Cybertruck 40,000 in actual sales vs expected 250,000 (as quoted by Elon musk)**

*News on Cybertruck sales reasonably ties in with my previous post regarding "Tesla: The reliability of press releases and earnings guidance*

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Comments

Mortimer Arthur
05-07
Mortimer Arthur
280-285 is a good neutral price to go into the FED meeting.
EVBullMusketeer
05-07
EVBullMusketeer
Why hasn't Elon shown up to sell us another dream yet?
marketpre
05-07
marketpre
High risk indeed

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If Robotaxis are thought of a replacement to car ownership (also in the namesake of TAM growth), shouldnt that also reduce overall demand for automobile, in turn affecting said company sales? 3. Trend of switching from ICE to EV: how about the competition between other automakers making similar shifts, chinese EV automakers with models that are cheaper and existing EV competitors? In my opinion, announcements of robotaxis and rollouts of cheaper model is not conclusive of Tesla's ultimate success in revenue and cashflow growth - which are imperative in valuation. 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