And So We Drive

Scott Galloway on the Future of Tesla

Great piece by NYU Professor Scott Galloway on the state of late stage tech startups. He argues, in short, that many are overvalued and ripe for massive devaluations. I agree with him.

Among those he thinks “could lose more than 80 percent of their value or disappear”: Tesla.

Tesla. Dear Twitter trolls: yes … I’m an idiot, I can’t do, so I teach, and I don’t understand genius. It’s a tech/energy play. I get it... Save your breath. Yes, he is a genius, Tesla has changed the world for the better (I believe this). And … Tesla doesn’t have the scale to compete in a well-run, low-margin business — auto.

Tesla makes a great product, but even now, as a nine-year-old, $43 billion company, it is still both reinventing the wheel on modern manufacturing processes, and exploring many different business models. If I had to make a prediction right now, I think Tesla gets scooped up by a larger OEM as a technology and battery manufacturing play.

I hope I’m wrong; I’ve loved their cars since I had a loaner Model S P90D in 2015.

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by Tyler Carbone