Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
This Invisible Tech Stock Threatens Amazon with 800,000+ Online Stores - 21st Nov 19
Crude Oil Price Begins To Move Lower - 21st Nov 19
Cracks Spread in the Precious Metals Bullion Banks’ Price Management System - 21st Nov 19
Why Record-High Stock Prices Mean You Should Buy More - 20th Nov 19
This Invisible Company Powers Almost the Entire Finance Industry - 20th Nov 19
Zig-Zagging Gold Is Not Necessarily Bearish Gold - 20th Nov 19
Legal Status of Cannabis Seeds in the UK - 20th Nov 19
The Next Gold Rush Could Be About To Happen Here - 20th Nov 19
China's Grand Plan to Take Over the World - 19th Nov 19
Interest Rates Heading Zero or Negative to Prop Up Debt Bubble - 19th Nov 19
Plethora of Potential Financial Crisis Triggers - 19th Nov 19
Trade News Still Relevant? - 19th Nov 19
Comments on Catena Media Q3 Report 2019 - 19th Nov 19
Venezuela’s Hyperinflation Drags On For A Near Record—36 Months - 18th Nov 19
Intellectual Property as the New Guild System - 18th Nov 19
Gold Mining Stocks Q3’ 2019 Fundamentals - 18th Nov 19
The Best Way To Play The Coming Gold Boom - 18th Nov 19
What ECB’s Tiering Means for Gold - 17th Nov 19
DOJ Asked to Examine New Systemic Risk in Gold & Silver Markets - 17th Nov 19
Dow Jones Stock Market Cycle Update and are we there yet? - 17th Nov 19
When the Crude Oil Price Collapses Below $40 What Happens? PART III - 17th Nov 19
If History Repeats, Gold is Headed to $8,000 - 17th Nov 19
All You Need To Know About Cryptocurrency - 17th Nov 19
What happens To The Global Economy If Oil Collapses Below $40 – Part II - 15th Nov 19
America’s Exceptionalism’s Non-intervention Slide to Conquest, Empire - and Socialism - 15th Nov 19
Five Gold Charts to Contemplate as We Prepare for the New Year - 15th Nov 19
Best Gaming CPU Nov 2019 - Budget, Mid and High End PC System Processors - 15th Nov 19
Lend Money Without A Credit Check — Is That Possible? - 15th Nov 19
Gold and Silver Capitulation Time - 14th Nov 19
The Case for a Silver Price Rally - 14th Nov 19
What Happens To The Global Economy If the Oil Price Collapses Below $40 - 14th Nov 19
7 days of Free FX + Crypto Forecasts -- Join in - 14th Nov 19
How to Use Price Cycles and Profit as a Swing Trader – SPX, Bonds, Gold, Nat Gas - 13th Nov 19
Morrisons Throwing Thousands of Bonus More Points at Big Spend Shoppers - JACKPOT! - 13th Nov 19
What to Do NOW in Case of a Future Banking System Breakdown - 13th Nov 19
Why China is likely to remain the ‘world’s factory’ for some time to come - 13th Nov 19
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19

Market Oracle FREE Newsletter

$4 Billion Golden Oppoerunity

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