Mediaboss Marketing

That sounds, err, somewhat unlikely. But it is at least possible. However, it would clearly be impossible for Tesla to dominate the car industry in such a way while its rivals also prosper. And yet that is what the soaring share prices of other EV specialists over the past year and the relatively stable share prices of traditional car markers currently implies. In other words, investors appear to believe there will be no losers from this ultra-competitive race to go electric. Medals for everyone!

Arnott says this is a classic example of the big market delusion, which often happens when a new market is created or an old market disrupted through innovation. All the different players get valued as if everyone will win because nobody knows how things will play out. The cannabis market is another good example.

Of course, Musk would argue that Tesla is not just another carmaker but a software-enabled business that will overturn the old economics of the industry before turning its sights on robotaxis, self-driving trucks, battery technology and more. Indeed, his new job title kind of makes exactly this point.

But the short-sellers who are betting against Tesla arent convinced. Its not that they think Tesla is a bad company or that Musks achievements arent staggering. Clearly the future is electric with western governments calling time on the internal combustion engine, and Tesla has stolen a march on its rivals. But the sceptics believe that the companys share price has gone way beyond a basic appreciation of those facts. And their logic is sound. Theres only one problem.

Read the rest here:
Musk the technoking reigns over the culture wars with feelings not facts - Telegraph.co.uk