If youre not first youre 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 its mostly a lie.
Microsoft introduced the first tablet computer in 2000. Apple didnt 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 worlds first major social network. Facebook didnt come along until years later. Today, Facebook is the worlds 6th largest public company. Friendster shut its doors in 2018.
So much for being first. I could go on and on with examples, but heres the thing More often than not, the first movers 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 worlds 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 dont know this, but Tesla is no longer the leader in electric cars. As Ill explain, its 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, Chinas 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. And get this... Chinas 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 withswarmsof 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 toSouth China Morning Post.
Unless you live in China, chances are youve never heard of the worlds biggest electric car maker, BYD
In the first half of 2019, BYD sold 145,653 electric cars in China. Thats as many as Tesla soldgloballyduring 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 worlds largest and most lucrative electric car market, Tesla is a dog. And its 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 worlds 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 Europes 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.
Its 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 electric car models in Europe are made by Tesla. In the next five years, Teslas share will shrink to a tiny 1.2%.
Please, Dont 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 its 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 youve 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.
Get my report"The Great Disruptors:3 Breakthrough Stocks Set to Double Your Money".These stocks will hand you 100% gains as they disrupt whole industries.Get your free copy here.
See original here:
- The perfect all-electric Ford Mustang is actually a souped-up Tesla - The Next Web - August 8th, 2020
- GMs Cadillac Is Coming for Tesla. The Lyriq Is on the Way, - Barron's - August 8th, 2020
- Tesla Haters Need New Lines of Attack if They Want to Keep Betting Against the Stock - Barron's - August 8th, 2020
- Tesla makes tiny change to Model Y that will save owners some headaches - Electrek - August 8th, 2020
- Is Tesla's Obsession With Manufacturing Really Starting To Pay Off? - InsideEVs - August 8th, 2020
- How will Tesla rivals top this EV innovation? - Automotive News - August 8th, 2020
- Tesla touchscreen wiper controls akin to texting and driving: German court - Business Insider - Business Insider - August 8th, 2020
- Shares of electric vehicle makers Nio and Nikola could be a better bet than Tesla, traders say - CNBC - August 8th, 2020
- Tesla Model Y Review: What's The Verdict After Two Months Of Ownership? - InsideEVs - August 8th, 2020
- Teslas Chinese Rivals Are Riding an IPO Boom in the US Despite Political Tensions - Observer - August 8th, 2020
- Tesla Is Limiting Supercharging To 120 kW In Europe, But Why? - InsideEVs - August 8th, 2020
- Commentary: Tesla in Austin will benefit San Antonio - San Antonio Express-News - August 8th, 2020
- GM Is Looking Pretty Jealously At Tesla And Nikola - Jalopnik - August 8th, 2020
- Confused golden retriever wags its tail as Tesla-driving owner abandons it in park and races off - Metro.co.uk - August 8th, 2020
- Nikola Tesla - Inventions, Facts & Death - HISTORY - August 7th, 2020
- This 840 HP Electric Mustang Is Built on the Tesla Model S Platform - Robb Report - August 7th, 2020
- Three Modified Tesla Model 3 Race Cars Will Attack Pikes Peak This Year - The Drive - August 7th, 2020
- The Tesla Of Banking Start-Up Cred.ai Unveils Its AI-Powered Credit Card - Forbes - August 7th, 2020
- Europe Is Building the Next Tesla. Who Knew? - Yahoo Finance - August 7th, 2020
- Why cultivated meat is about to have its Tesla Roadster moment - Massive Science - August 7th, 2020
- Whats Ahead for Tesla, Nikola, and Other Electric-Vehicle Stocks - Barron's - August 7th, 2020
- Tesla Vs The Short Sellers: The Battle Is Never Over - InsideEVs - August 4th, 2020
- Check Out This Tesla Model S With A Rotary Engine: First EV Converted To Rotary? - InsideEVs - August 4th, 2020
- Tesla Model Y drive, Fisker and VW, the potential of bi-directional charging: Today's Car News - Green Car Reports - August 4th, 2020
- Here are Monday's biggest analyst calls of the day: Nikola, Merck, Yum! Brands, Tesla & more - CNBC - August 4th, 2020
- Chinese Tesla rival Xpeng Motors in talks over $300 million in funding ahead of U.S. IPO, sources say - CNBC - August 4th, 2020
- Don't Wait: Ten Reasons To Buy The Tesla Cybertruck NOW! - InsideEVs - August 4th, 2020
- Tesla Gets Yet Another Electric Vehicle to Compete With Ahead - 24/7 Wall St. - August 4th, 2020
- Exclusive: Panasonic aims to boost energy density in Tesla batteries by 20% - executive - Reuters - August 4th, 2020
- Tesla is working on massive sales presence expansion with new markets - Electrek - August 4th, 2020
- Tesla's Berlin plant on the fast track, minister says - Automotive News Europe - August 4th, 2020
- How Hyliions Under-30 CEO Aims To Compete With Tesla And Nikola In The Electric-Powered Big Rig Revolution - Forbes - August 4th, 2020
- Tesla shares sag as analyst flags mind-boggling valuation - The Detroit News - August 4th, 2020
- Ram Could Follow Tesla, Ford and GM and Build an Electric Pickup Truck. But Should They? - Gear Patrol - August 3rd, 2020
- Europe Is Building the Next Tesla. Who Knew? - Bloomberg - August 3rd, 2020
- Confused Tesla Model 3 Thinks It's a Lambo with Huge Wing and Louvered Window - autoevolution - August 3rd, 2020
- How Tesla Was Lured to Austin - Texas Monthly - August 3rd, 2020
- Elon Musk on Tesla Cybertruck: The goal is to kick most amount of ass possible with this truck - Electrek - August 3rd, 2020
- A.I. helps businesses recover from the lockdown And can Nissan take on Tesla? - Euronews - August 3rd, 2020
- Teslas Newest Partnership With An HBCU Is A Great Thing - CleanTechnica - August 3rd, 2020
- Tesla plans $780 million bond deal pegged to vehicle leasesits first such offering during the pandemic - MarketWatch - August 3rd, 2020
- Tesla fans snap up bonds tied to car maker's leases, its first such offering during pandemic - MarketWatch - July 31st, 2020
- Tesla and Nikola electric semis will arrive to rivals from traditional truck makers - Green Car Reports - July 31st, 2020
- Teslas Next Frontier The Tesla Home - CleanTechnica - July 31st, 2020
- What Are The Chances Tesla And Volkswagen Join Forces? - InsideEVs - July 31st, 2020
- Tesla is expanding battery cell manufacturing team, now hiring production associates - Electrek.co - July 31st, 2020
- Move over Tesla: Robinhood day-trading crowd finds a new speculative favorite in Kodak - CNBC - July 31st, 2020
- Tesla of Thailand Mulls Hydropower Plants to Balance EV Risks - Bloomberg - July 31st, 2020
- Stocks making the biggest moves midday: 3M, McDonald's, Tesla, Eastman Kodak and more - CNBC - July 31st, 2020
- Stocks making the biggest moves midday: Advanced Micro Devices, Tesla, Intel & more - CNBC - July 31st, 2020
- Amazon And Tesla Versus 885 Cheap Stocks - Forbes - July 31st, 2020
- Tesla is 2 years ahead of the industry in critical areas, Audi CEO says - Electrek.co - July 30th, 2020
- Lucid unveils its driver-assist plan to compete with Teslas Autopilot - Electrek.co - July 30th, 2020
- Behind Teslas Profits - Forbes - July 29th, 2020
- The 400% Tesla Rally Was Only The Beginning Of The EV Boom - OilPrice.com - July 29th, 2020
- Jamie Foxx Uses All the Swears in a Tesla Test Drive - Autoweek - July 29th, 2020
- Tesla could reap benefits of truly exciting glassy metal battery research - The Driven - July 29th, 2020
- Here are the biggest analyst calls of the day: Shopify, Tesla, Alphabet & more - CNBC - July 29th, 2020
- Opinion: Tesla is defying the laws of brand-building - AdAge.com - July 29th, 2020
- Check Out This Tesla-Powered Electric Van Project: Behind The Scenes - InsideEVs - July 29th, 2020
- Audi CEO: Tesla is 'two years ahead' of the curve - CarAdvice - July 29th, 2020
- First look at Elon Musks personal Tesla Model S with prototype color - Electrek.co - July 28th, 2020
- How Tesla defined a new era for the global auto industry - Reuters - July 28th, 2020
- Last Tesla Roadster ever built listed for more than $2 million - CarAdvice - July 28th, 2020
- The Tesla Model Y Made In Germany Will Be Quite Different - The Drive - July 28th, 2020
- What Are EV Regulatory Credits And Why Is Tesla Selling So Many Of Them? - Yahoo Finance - July 28th, 2020
- Options traders bet Tesla's earnings report will add $75 billion to the stock's market cap - CNBC - July 28th, 2020
- Huston-Tillotson University announces partnership with Tesla on learning initiatives, programs for students - KXAN.com - July 28th, 2020
- Tesla and Microsoft Earnings Will Move the Market - Barron's - July 28th, 2020
- Will The German Car Giants Ever Catch Tesla? - Forbes - July 28th, 2020
- Tesla On A 'Hiring Spree' In China As It Readies For Model Y Production: Report - Benzinga - July 28th, 2020
- Watch Out, Tesla: BMW Is Racing Ahead With Its Electric Vehicle Plans - The Motley Fool - July 28th, 2020
- Nike Taps Former Tesla Executive as Its New Diversity Chief - Bloomberg - July 28th, 2020
- Tesla Van With Camping & SpaceX Packages Brings It All Together Could It Replace Your Home? - CleanTechnica - July 28th, 2020
- Is Now The Time To Short Tesla's Stock? - Benzinga - July 28th, 2020
- Tesla Model Prices, Photos, News, Reviews and Videos ... - July 27th, 2020
- People Called Us Tesla Biased For Years. Perhaps We Just Analyzed The Story Decently? - CleanTechnica - July 27th, 2020
- Texas Matters: Pandemic Politics And The Tesla Effect On Texas - Texas Public Radio - July 27th, 2020
- Charting Tesla, Apple, and Netflix. - TheStreet - July 27th, 2020
- 'Radioactive' and 'Tesla' celebrate science through the lens of its pioneers - CNN - July 27th, 2020