Obviously I'm very bullish on Tesla. I think when you look at the economics of self driving cars and price drop on batteries, as soon as ANY city makes full self driving legal, Tesla will be unable to meet demand. And odds are sometime by 2019-2020, some city / state will allow it. 1. As soon as the Tesla Network works anywhere, everyone in that city buying a car would shift their purchasing to Tesla. The other automakers don't intend to make a similar car available for general purchase that can earn cash while the owner is doing other things until at least 2021 (probably not at scale until a few years after that). So no other car that is purchased for economic reasons can compete. Why would anyone in that theoretical town walk into a Hyundai/Toyota/VW dealership and buy a $20k car with $400/month payments when they can get a $45k Tesla for $900/month and earn back the entire car payment while they are watching TV? Furthermore the depreciation on an income producing asset is tied to the reduction in annual income, not to aesthetics or desire for "something newer". So long as the Model 3 earns, say $800/month, it should retain most of it's value. If it depreciated to say $20k and still earned $800/month the demand for used Model 3's to use as income generators would outstrip supply causing prices to increase. Hence with such low depreciation, the effective monthly cost of owning a Model 3 (or any Tesla) should be significantly lower than any other car that costs far less than a Tesla. That's why in any city that allows the Tesla Network to operate, Tesla would essentially have unlimited demand. As they try to satiate that demand, more cities will rapidly follow along at a pace that will very quickly outstrip Tesla's ability to supply. In my view, by 2020 Tesla should be able to sell as many cars as they want and will only be supply constrained. The difference then compared with now is that by being supply constrained in 2019, Tesla will be losing out on adding even more cars to the Tesla Network at a crucial time when network effects could kill off the other manufacturers chances before those other firms have a chance to ramp up. By selling fewer cars, Tesla leaves room for the other manufacturers to ramp up and catch up. In addition, demand for powerwall and potentially Tesla semi but certainly Tesla driverless shuttles should be huge and immediate as soon as self driving is fully implemented. It takes time to build up capacity and as ambitious as Tesla is, it just seems that the Fremont factory (even at 1MM cars/year) and the Nevada Gigafactory will be woefully inadequate to meet demand. Since we are only 3 years away and it probably takes more than 3 years to build a new car factory and additional gigafactories, they need to get started ASAP, they're probably too late already.