πŸš€A potential compounder: Tesla $TSLA πŸš— (June 2022) via /r/wallstreetbets #stocks #wallstreetbets #investing


πŸš€A potential compounder: Tesla $TSLA πŸš— (June 2022)

I take a longer-term perspective by looking at their years of financial performance and accompanying financial metrics compared to their competitors (the industry giants and EV startups). There is a lot of information publicly available about Tesla, detailed quarter-to-quarter analysis and strategies discussion that I do not want to replicate.

Who can challenge Tesla?
Infinite game. Can the competitors play the infinite game; focusing on the long-term vision, able to move fast with aggressive investment rather than meeting short-term profitability and share price expectations?

Incumbents versus startups. Can incumbents win against startups when the industry is moving towards the early phase of a new S-curve? History shows that it is difficult.

Capital allocation. We need to monitor their capital allocation between reinvestment versus dividends payout and share buybacks. Tesla and the startups are all reinvesting as much as possible and not into dividends and share buybacks which the incumbents were doing pre-Covid.

We are still early. Tesla’s challengers can be one of the current companies listed in this post. The challengers may exist in the form of a partnership where they work with various best-in-class (Apple, Nvidia, Mobileye, Cruise, Waymo).

Check out the post for a detailed analysis:

https://ownthegame.blog/2022/06/08/a-potential-compounder-tesla-june-2022/

Submitted June 15, 2022 at 02:44PM by No-Finance6090
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