Mithras:
My god you guys are Black and White with everything! I know I'm not too different sometimes but jeeze!
Tesla is not the best car manufacturer in the world.
Tesla is not the worst car manufacturer in the world.
They have a LOT of cash, but not anywhere as much as one of the major car manufacturers. They are hiring high quality people because 1) people want to work there, 2) they are paying well 3) they need to create from blank sheets new things and aren't burdened by history or legacy. 4) they have a boss that isn't afraid of radical thinking or moving on if it isn't working. They are rapidly getting better but some aspects of the cars still need to come a long way. They are hiring people that should be able to make those changes (interior designers from Audi for example).
They were never going to be the sole player in the EV world, they will be one of many, most of whom are better know car manufacturers. BUT they have first mover advantage. When a regular person thinks "Electric Car", they probably think Tesla. That is much more valuable than had they started as an ICE or Hybrid manufacturer that then got into EV.
They also have a massive advantage with their charging grid. Not just on the road but parked in your garage charging from a Tesla house module powered from your Tesla roof, supplemented from the Tesla solar power station into the Tesla built battery.
Pretty much EVERY Hybrid and EV has started to use Panasonic batteries (18650) and the new better ones (2170) are only at the moment for Tesla from the Gigafactory. Between that factory and the Panasonic one in Dalian that will be the source of the vast majority of all batteries regardless of maker. That alone will insure that Tesla stays relevant because that whole market is beyond opaque and now controlled by Panasonic and Tesla. Kind of like if 40% of the world's cars had engines make by Ford. You might not drive a Ford, but your car is driven by Ford...
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Past-President, Porsche Club of America - Upper Canada Region
Tesla may have what appears cash on the balance sheet but the amount lags what is necessary to fund new product development and to support its operations. Tesla, as you are probably aware, has tapped the cap mkts, in the last few months with debt offerings and secondaries to increase the cash on hand. Automaking is a capital intensive business and while Tesla is fleshing out its product line with the Model 3, it needs to also be revamping its current lineup as well as developing new product. The Model S, for example, is nearing the point of revamp. Meanwhile, others, and one agrees that Tesla has the first mover advantage, are developing comparable product. Recall that Apple is seldom the first mover in a product vertical.