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Mr. No Nonsense
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My name is James and I work full time and trade part time. I'm completely self taught when it comes to investing and trading. I read anything I can get my hands on and learn from the best and most expensive teacher of all - the market.
  • Tesla Model E Will NOT Appeal To Masses 0 comments
    Dec 17, 2013 5:45 PM | about stocks: TSLA

    Firstly, I think we all agree that most of Tesla's success is predicated on the success of the "affordable" model E that will be sold to the masses. In this article I will use simple logic to explain the reasons why the Model E will surprise everyone with its lack of success.

    First and foremost what people are failing to account for is that "the masses" don't ever want to compromise and they certainly don't care about electric vehicles or Tesla's great story. I have asked average people and the first things they say when I mention electric vehicles is "where would I plug it in on a long trip?" and "won't that raise my electric bill?" and "they take forever to charge". As much as I hate to admit, the general public is not ready to embrace electric vehicles. Tesla will more than likely be a niche luxury automaker for quite some time and this reality will set in slowly and be reflected in the share price over time.

    Now, in order for electric vehicles to be embraced by the masses several things need to happen first:

    1 - Electric cars need to be as cheap as or cheaper than regular cars because price matters most to the general public

    2 - Charging stations need to be everywhere to eliminate range anxiety, not just Tesla's off the beaten trail super chargers

    3 - Range needs to be as much as a full tank of gas

    4 - Gas needs to go up to over $7 per gallon because prices this high will force people to look for gasoline alternatives

    The bottom line is that the masses will only embrace something if it is to their benefit and there are still far too many compromises involved in owning an electric vehicle, which is why at least 3 of the 4 items on my above list must come to pass first. You don't have to take my word for it though, just ask the average person what they think about electric cars and listen for yourself.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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