Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20
Gold Mining Stocks Fundamentals - 18th May 20
Why the Largest Cyberattack in History Will Happen Within Six Months - 18th May 20
New AMD Ryzen 4900x and 4950x Zen3 4th Gen Processors Clock Speed and Cores Specs - 18th May 20
Learn How to Play the Violin, Kids Activities and Learning During Lockdown - 18th May 20
The Great Economy Reopening Gamble - 17th May 20
Powell Sends a Message With Love for Gold - 17th May 20
An Economic Renaissance Emerges – Stock Market Look Out Below - 17th May 20
Learn more about the UK Casino Self-exclusion - 17th May 20
Will Stocks Lead the Way Lower for Gold Miners? - 15th May 20
Are Small-Cap Stocks (Russell 2k) Headed For A Double Dip? - 15th May 20
Coronavirus Will Wipe Out These Three Industries for Good - 15th May 20
Gold and Silver: As We Go from Deflation to Hyperinflation - 15th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Tesla Is the Underdog in the Electric Car Revolution

Companies / Electric Cars Nov 01, 2019 - 04:49 PM GMT

By: Stephen_McBride

Companies  If you’re not first… you’re last.

You may recognize this quote from fictional racecar driver Ricky Bobby. But it could easily be straight from a business school lecture.

Many professors preach the importance of “being first” in business.

But I have to tell you… it’s mostly a lie.

Microsoft introduced the first tablet computer in 2000. Apple didn’t unveil the iPad until a decade later.

The iPad has sold 360 million units… while the few “Tablet PCs” Microsoft sold are buried in junkyards.

“Friendster” started the world’s first major social network. Facebook didn’t come along until years later.



Today, Facebook is the world’s 6th largest public company. Friendster shut its doors in 2018.

So much for being first. I could go on and on with examples, but here’s the thing…

More often than not, the “first mover’s advantage” turns out to be a curse.

The most successful companies… the likes of Amazon, Google, Apple that handed investors big gains… were not first movers.

Again and again, the second... third… and fourth movers are the ones that get rich.

Tesla Is a Cursed First Mover in Electric Cars…

As you probably know, Tesla pioneered electric cars.

In 2008, it released the Tesla Roadster, the world’s first highway-legal electric car.  But the real breakthrough was the iconic Tesla S, its first all-electric sedan launched in 2012.

For the first time, an electric car was not just a toy… but a real vehicle folks could drive every day.

Tesla S has quickly become the standard of electric cars. Over 500,000 cars were sold.

Since the Tesla S release, Tesla stock shot up 670%...



Like all first movers, Tesla initially enjoyed little competition. Until not long ago, there was no electric car model that could compete with the Tesla S.

But everything has changed.

Car giants have woken up. They started releasing one electric car after another, quickly crowding Tesla out.

Most people don’t know this, but Tesla is no longer the leader in electric cars.

As I’ll explain, it’s becoming an electric car underdog that may soon be just another failed first-mover.

This may surprise you...

Let me show you the most important chart about the electric car industry…

It shows the number of electric cars sold in the US, Japan, China, and the rest of the world in recent years.



For a long time, America dominated in electric cars, thanks to Tesla.

But in 2016, China’s push towards green energy started a massive electric car boom.

Today China makes up more than half of the global electric market.

Last year, 1.1 million electric cars were sold in China, compared to just 358,000 in the US, according to The Conversation.

China’s capital city Beijing has more electric car charging stations than the entire US.

Tesla Is a Dog in China

China has been flooded with electric car makers. And Tesla is now battling with swarms of Chinese companies.

There were 486 electric car makers in China as of March this year. (Yes, 486. This is not a typo.)

Every other day, a new electric car company is founded in China, according to South China Morning Post.

Unless you live in China, chances are you’ve never heard of the world’s biggest electric car maker, BYD

In the first half of 2019, BYD sold 145,653 electric cars in China. That’s as many as Tesla sold globally during the same period.

No surprise, local car makers capture 93% of the market in China, according to Fast Company. Meanwhile, Tesla has a puny 6% share.

See the big picture?

In the world’s largest and most lucrative electric car market, Tesla is a dog. And it’s quickly losing whatever is left.

Worse, China will slap a 25% tariff on Teslas later this year as part of the brimming trade war between China and the US.

Tesla Is a Dog in Europe, Too

Europe is the world’s second-largest electric car market.

Today, 1.3 million electric cars zip around European roads... compared to 1.1 million in America, according to HybridCars.

But Europe’s electric car boom has just started.

With new EU rules for automakers designed to reduce carbon emissions, Europe is making a full-on shift into electric cars.

In some parts of Europe, more than 50% of new cars sold are electric, according to NPR. But with the new rules in effect, electric cars will become a common sight on most European roads.

It’s estimated that the number of electric car models available in Europe will shoot up 75% by the end of 2020, according to The Driven.

Let me show you another important chart. (Viewer discretion advised for Tesla investors.) It shows the number of electric car models coming to the European market:



Just like China, Europe will soon be flooded with electric cars.

Today, only 4% of all EV models in Europe are made by Tesla. In the next five years, Tesla’s share will shrink to a tiny 1.2%.

Please, Don’t Buy the Dip in Tesla

Have you seen Tesla stock lately?

It has been beaten to death in the past year, crashing almost 30% since the end of last year. A couple of my readers asked me if it’s a good opportunity to buy it for cheap.

In all fairness, Elon Musk has pulled off what seemed to be impossible not so long ago. Tesla has paved the way for electric cars and will go down in history for that.

I respect his accomplishments… but Tesla is a terrible investment. The stock is fueled by hope, and hope is fading.

Giant car makers are coming for Tesla… and as you’ve seen, all signs show they have the upper hand.

My recommendation: Stay away from Tesla. There are better, safer, and higher-upside ways to earn money in the stock market.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get my latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Stephen McBride

http://www.riskhedge.com

© 2019 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules