Over the past few years I have been following Tesla; from its SolarCity acquisition, to the Cybertruck unveil. When I started following Tesla back in 2016, the stock was hovering around $200 ($40 split adjusted) a share. Today, it’s broke another all time high, and is currently $594 ($119 split adjusted) a share. Tesla has seen much of this rapid stock growth in just the past 6 months. Here are 6 reasons why Tesla will continue to crush its competition.
1) Batteries
Tesla has about a 3-5 year lead over the closest competitor when it comes to battery technology. Other EV manufacturers will have to sell their cars at a loss to compete with Tesla’s low battery costs. Tesla recently merged with 2 battery technology companies that are currently working on a possible battery breakthrough. If this is successful, it will only push Tesla’s battery lead even further.
2) Solar/Solar Glass Roof
Tesla has solar and the solar glass roof that will slowly become one of the largest segments of its business. This is probably the most undervalued segment of Tesla’s current business. The future is electric, and you have to charge the electric cars somehow. With its partnership with Panasonic, and the purchase of SolarCity, Tesla will soon regain the title of America’s largest solar provider. Most solar companies have struggled to stay in business after the recent Chinese solar tariffs. Tesla’s solar panels will be American made in Buffalo New York.
3) Fully Electric Since the Beginning
Tesla has been fully electric since it’s beginning. It’s competition; still needs to transition from combustion to electric, which is no small task. Auto manufacturers know the future is electric, yet most are still making combustion engines. Already being a fully electric car maker is yet another reason why Tesla will maintain its 17% EV market share.
4) Full Self-Driving Data
We all know the future of cars is fully autonomous and electric. Tesla has over 12 billion miles worth of self driving data that it is feeding to its deep learning software. The closest competitor; Google, only has 10 million miles of data for perspective. One small chip will change the world, and Tesla is the closest to getting there while maintaining its lead. With regulators interested in data, Tesla has loads of data that proves it’s safer to let the car drive itself. Tesla drivers are already 40% less likely to get into an accident.
5) Engineers
Tesla is the #2 employer of choice for engineers who just graduated. (SpaceX is #1) What does this mean for Tesla? It means it’s attracting the best and the brightest. Tesla is a place where engineers can challenge themselves all while working for a good cause. Tesla will continue to make beautiful cars and products that are better in all ways then the competition.
6) The Tesla Effect
What happens when someone becomes a new Tesla owner? They tell their 5 closest friends and want to take them on test rides. We all know word of mouth advertising is the best form of advertising. Tesla continues to spend $0 on advertising because of the Tesla Effect. Social media influencers, celebrities, and the average joe, all love to talk about Tesla. This is a huge advantage over the competition who is struggling to get your attention.
Business in the Modern World 
Excellent read. Very insightful.
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