Although the article's title is a little odd, it's worth reading. Someone finally GETS what Tesla is trying to do from a business perspective and it includes some perfect comparisons with the Porsche and Mercedes markets.
Good article. I also like his Tesla has reached 100% market share article linked from that one. At some point Mercedes and BMW will wake up and try to compete, but if history of these types of disruptive changes is any guide, it will be too little too late.
Yeah, his image of analysts desperately trying to make their old tools work on the wrong material is very good.
It would be interesting to get tighter data on other "segments" than the $100K B7s and MBSes. It would be even more fascinating to get market-share data on people buying "up" (spending much more than they ever have before on a car). I expect Tesla (in SoCal, anyway) is darn close to 100% there, too.
I'm certainly buying up. I never would have considered spending this much on a car before.
Well, there is no doubt Mercedes lost a sale when I decided to buy the model S. Is 20,000 sales taken away from various car manufactures enough to harm THEIR stock prices? Because that is what definately will happen regardless of Tesla's profitablility.
"Instead, the single fact from the Tesla report that distills the entire incremental verdict is this: Tesla will be profitable this quarter (1Q13), three quarters ahead of the previous plan (4Q13). Everything else from the quarterly report was noise."
How true. Tesla has only one goal to prove: design and produce EVs and sell it for a profit. All established car companies have failed at it very badly in modern times. Once Tesla can show it on an ongoing basis everyone else will want to ride on that train.