Is the honeymoon over for Tesla Inc.? Tesla has yet to make a profit – Outgoing Panasonic CEO says the company must cut reliance on Tesla as battery competition evolves – March 14, 2021,

So Tesla in many ways is exactly what’s wrong with the modern world, it’s not to say that Tesla Inc. is worthless, it’s just you have to ask if Tesla Inc. is worthy of its current valuations? Personally, I don’t think Tesla Inc warrants its current market share price which as of today’s date is about $694USD per share.

Now, think about it for a second that the creator of the Prius, Toyota is currently valued at $151USD per share? Now, sure the Tesla EV is a superior model, but it’s not superior to the point of profitability, meaning that if Tesla is unable to lower the price, it’s unlikely that it will gain the market share it wants.

On the flip side, Toyota has already found that sweet spot and has a proven track record of profitability, so, it reality the Tesla stock price is nothing more than what investors imagine the value of the Tesla will be in the future, but as you can read by the article I point to below, the writing is on the wall that competition in the EV market is ramping up and outgoing Chief Executive of Panasonic Kazuhiro Tsuga is giving people a glimpse as to why at 64 he sees more options for Panasonic.

Ford Motors no longer dominates car manufacturing, just because you’re a leader in a particular period of time, doesn’t always equate to you or your company being a leader in the long term. For the most part, Ford Motors is now a niche company “Ford F-150” comes to mind when most people think of Fords.

I can personally see a world in which Tesla Motors becomes a niche company, I often blame Western Labor Union culture as the main culprit to the lack of success for U.S auto manufacturing, but it’s not like labor union culture is going to vanish overnight.

I do think all U.S auto-manufacturing companies would be very profitable had it not been for the current labor union culture, but the truth is if there wasn’t such a destructive labor union culture in the U.S, it’s not even certain that GM, Ford Tesla or even Chrysler would even be tops in their respective industries because with a lower barrier to entry, consumers get more options.

I mention the aforementioned because if the honeymoon is over for Tesla, people have to remember that electric cars have far fewer moving parts, meaning that if more companies get access to the battery market and set up a more business and consumer-friendly environment for the EV market, Tesla may soon find itself on the outside looking in.

Tesla in 2021 is pop culture but once EV’s or Hybrids become the norm, the market will shift, consumer behavior might shift, for most people they’ll take a low maintenance EV, low-cost EV over a high-cost EV any day. Once Tesla reaches the point in which it’s simply a luxury EV.

The history of public luxury brands is a wild stock ride, because if that public luxury brand is unable to resonate with the popular culture which revolves around the Younger generations, well, things could become challenging. Tesla Inc. will always be given credit for revolutionizing the EV market, but that doesn’t necessarily mean that in the long term it will dominate the EV market.

Outgoing CEO says Panasonic must cut Tesla reliance as battery tie-up evolves: FT | reuters.com

Interesting times ahead!