Tesla vs. The Macro: Tesla’s businesses, their competition in each of those businesses, and each businesses’ projected 2025 market cap. (Tesla vs. The World)
I used to call it a moat; instead, I turned it into an acronym. MOAT: Most Opportunistic “Automaker”, Tesla! However, what Elon Musk said about building tech trees makes sense. A tree branches out, toward the sun, it's energy source. These branches (or company start ups within an already existing company) support each other. One tech supports another prolonging its life by providing additional capabilities, like FSD in an EV.
Auto is the first business and software is the second business I mention in this whole understanding of the behemoth, Tesla. X account used for research to develop this article:
Let's start with Tesla business 1: Auto, which includes all sorts of land vehicles like cars, Cybertruck, Semi truck, and more to come. Their competition in auto come from Toyota, VW Group, Stellantis (Chrysler, Jeep), Ford, GM, and a gaggle of Chinese electric vehicle producers. The next part of Tesla's automotive business is powertrain, with competition from BorgWarner, Bosch, and Mitsubishi. I think Tesla shall remain strong compared to that competition. Another part of Tesla's Auto business is in their production of seats. Faurecia, Lear Corp, and Johnson Controls also produce seats. Tesla owners rave about Tesla seats. Service is the next section of Tesla Auto. Tesla Auto Service competes against Dealer Networks. Lastly, used car sales is another Tesla business. Tesla has competition from Carvana, Auto Trader, and Dealer Networks. Tesla can win the used car sales business as long as Tesla sells used Teslas. Their cars just don't depreciate in value like international combustion engine cars & trucks. Remo projected the 2025 market cap for Tesla Auto at just under $500,000,000,000.
Here's the second Tesla business. Margins, margins, margins…Tesla Hardware & Software is here. It includes infotainment (the vehicle's operating system). In this field, Tesla competes with the likes of Apple Carplay and Android Auto. The next part of Tesla Hardware & Software is the Tesla app store. That competes against Apple App Store and Google Play. Tough competition for Tesla. If Tesla makes strides in overtaking Apple & Google, look out! That would mean Tesla is beginning to dominate the Macro. Do you know about FSD? Tesla’s full self driving chip is the next part of the software and hardware business. Nvidia and Intel also work on chips like this. That's some more large market cap competition. Tesla’s Dojo chip also makes it to this sector of the business. Dojo chip competition includes Google TPU and Nvidia GPU. Dojo SuperComputer Cluster is its own part of Tesla Hardware & Software. Google ML Services and Nvidia T100 Cluster are competitors with Tesla in that field. More big competition means more to overcome. Tesla has to work diligently in this business because the consequences are swift. Autopilot/FSD is another business, competing with Waymo, MobilEye, and Cruise. I believe that analysts all throughout the old media misunderstand FSD and evaluate it with prejudice and scrutiny. Charts show Tesla FSD as being way behind in autonomous vehicle competence. I disagree with that. Let's reevaluate the FSD discussion later. The NACS discussion has already been settled. Tesla innovated and named their electric vehicle charging standard, once dubbed North American Charging Standard (NACS), but now it is officially known by that name.
This is not a paywall. I'm honestly tapped out for the day. I shall continue this article tomorrow. There are a lot more businesses and smaller businesses within each business. Like a strong tree with a deep foundation, Tesla’s tech trees stretch and grow, covering more space. Anyway, there is so much more for me to cover. Again, I will continue this article tomorrow. Honestly, I'll probably be using my lunch break at work tomorrow to complete part 2 of this article.
To be continued 🤖🧡
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