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Moats: Why Tesla Can Do What Other Car Companies Only Dream About

Discussion in 'Tesla, Inc.' started by Patrick0101, Apr 20, 2018.

  1. Patrick0101

    Patrick0101 Member

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    In modern business parlance, a moat is something that protects a business from competition or gives it an advantage. A moat could be a trade secret, patented product or process, or an asset that represents a significant capital investment. A moat could be a partnership, an exclusive license, a government granted limited-monopoly, or any barrier to a...
    READ FULL ARTICLE
     
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  2. CBPfromTN

    CBPfromTN Member

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    What dreams are made of: Tesla. You truly have to own one to really understand it. Even if you don't love cars, you'll love Tesla. Everything about a Tesla is just everything I ever dreamed of in a car! :) Love at first sight :D
     
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  3. Peter Thomas

    Peter Thomas Member

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    Elon and the Tesla team has lead the world in developing automated manufacturing which I also believe is the most important product that Tesla has. Within a few years Tesla's will be coming off the manufacturing line faster than even Elon predicted. This efficiency of automation will allow all us humans to focus on other activities such as building rockets for Mars and starships to visit our friends in other galaxies and also developing new forms of art and other ways of expressing ourselves. However, we will need to find ways to smoothly transition the work force to the new activities that benefit us all and help us all come together as one world that is in peace and harmony and has common goals of reaching out to explore the universe and meet our new friends who are anxiously looking forward to meeting us all.
     
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  4. kwalter827

    kwalter827 New Member

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    Love, love, love this article. Well done! Thanks for posting it. I totally agree and in light with what JP Morgan said today about Tesla's competition from the old school car companies, it is timely and relevant. Hopefully, their investors can find it before they decide Tesla is dead. I just got my Model 3 and love it even more than my Model X. My wife loves it so much she barely lets me drive it. We were loyal BMW owners for the last 20 years, but not anymore.
     
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  5. gavine

    gavine Petrol Head turned EV Enthusiast

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    I think "talent magnet" is one of their most valuable moats.
     
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  6. SageBrush

    SageBrush 2020: Drain the Sewer

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    All I can say to this is: Yup
     
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  7. Eeems

    Eeems Member

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    This is so well said, I have not much to add! Just a few words...
    I never cared about cars, never owned luxury sedans or anything close before.
    In fact, I didn't own a car for 16 years (New York city allowed me to get around without a car).
    But Tesla is not just an amazing car. It's a mission. And I had to be part of it!
    So, now I'm an extremely happy Model S owner and obsessed with it and anything about it (including Elon and all his crazy awesome ideas and companies)!
    Thanks and keep up the great writing!
     
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  8. Eeems

    Eeems Member

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    Same experience here. Love at first sight and ever since!
     
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  9. Eeems

    Eeems Member

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    Freakin' awesome post!! Summarizes it all pretty much. Thank you!
     
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  10. Xenoilphobe

    Xenoilphobe Active Member

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    @Patrick0101 Nice job! You really understand! I would add freedom from foreign oil and all the ugliness that goes with that. We have loved our 3 model S's and are moving our kids into the Model 3...
     
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  11. arcus

    arcus Active Member

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    A great read, thank you sir!
     
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  12. CBPfromTN

    CBPfromTN Member

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    As gasoline prices are projected to go up to a high not seen in several years.....I love my Tesla!
     
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  13. TES-E

    TES-E Member

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    Nice post. Well Done!!
     
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  14. 1208

    1208 Active Member

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    As someone who lives in a country with moats surrounding castles, I approve this message.
     
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  15. WarpedOne

    WarpedOne Supreme Premier

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    I will rudely post tiny bit of critique: the author's POV is a bit USA-centric.
    Some of those moat do not apply in Europe, Asia or Australia?
    There may also be moats that only apply outside of USA?

    Otherwise 'I'm already linking this great overview all over the internets...
     
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  16. Blu Angel

    Blu Angel Member

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    Patrick, great article!

    Great perspective to see Tesla's advantages over OEM manufacturers
    These are my personal MOAT choices in order of importance

    1. OTA (Over the Air updates)
    2. Brand Recognition
    3. AI (Artificial Intelligence)
    4. Supercharger Network
    5. Direct Sales
    6. Vertical Integration
    7. Gigafactory
     
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  17. SOULPEDL

    SOULPEDL Supporting Member

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    I'd like to add that Waymo collects data here in Chandler using the same streets over and over. They come through our cul de sac every day, more than once a day even. I've seen 2 at the same intersection at the same time... Obviously they have low variability in their testing, but they should be pretty good at driving these same roads ONLY!

    Whereas Tesla drivers are all over the globe gathering data. Lot's of variability = better learning (when it comes to complex tasks, a basic fact in ISD and Learning Theory for humans). And Tesla doesn't have to pay for our service (glad to be of) so it will alway be an added cost for the competition.
     
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  18. Takumi

    Takumi Member

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    Everything from the floor pan down...
     
  19. SOULPEDL

    SOULPEDL Supporting Member

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    Wish they would raise gas prices! Although I don't drive for a living. All the forces against Tesla might actually be part of the reason they've dropped in the past few years. I wouldn't put it past Congress.
     
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  20. SOULPEDL

    SOULPEDL Supporting Member

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    We are early in the Production Cycle for a NEW METHOD simultaneous to a NEW CAR. If Elon says it's more precise, then you either measured the standards that don't matter as much today, or it's not at the right time in the life cycle because you haven't separated variability in the NEW METHOD from variability inthe NEW CAR.

    The 10x precision he speaks of is likely the machine capability, maybe even supplier quality requirements, not the product at the time you sampled just 2 of them pretty early on. Give his METHOD some time. Quality is a moving target, but honestly I didn't finish watching after I heard the Model 3 was in the bottom 50% of the market in terms of precision. Like weather vs climate on many of these articles and jabs. These two cars were created in the middle of a storm and you think the future climate will be junk cars... Really?

    On the other hand, there is some chatter on this forum about failing Quality Inspections at final or customer inspections, so I'll be ready for that next Friday when we pick it up, and I do anticipate variation, for now. Those gaps better be even and I've got a great eye coming partially from the Tooling industry and having worked closely with both the Dutch and Germans, one of them being Grohmann whom I worked with as a former Intel Engineer. Incidentally, Musks recent GYAT message reminds me of Any Grove (Intel Founding Member). Too bad Intel lost him and many of his original Intel Values. The whole "going through proper channels" was the reason things didn't work out so well for me in the end. I can disagree and commit to a point - but not a Rex Tillerson type here.

    Some may wonder why I favor the words from Musk with so much trust. Maybe because the Bears on this forum and everywhere are so obvious and the less educated fall for it; they like their Chevy's too. I was a Chevy man, and parts of me still want that Chevelle SS, (OK maybe a Cobra too) but I'm feeling like a wasteful pig now when I drive my '63 Buick Lesabre Convertible (and it does turn every head, not mint, but 99% original). I'm just not Bob Hope all fat and happy. Instead, today I reflect upon how others on the road view my decision to drive it that day. This negative feeling keeps growing when I drive it, so I need to park the damn thing or sell it eventually and invest in more guitars instead.

    People are the biggest moat around Tesla. Over 50% of my retirement is very long in Tesla stock. Just bought more on that last dip and can't seem to actually sell any. I don't even have an exit strategy. It's risky for sure, so the rest is in cash and bonds. I just might go all in after I see FSD and take a long road trip.
     
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