From my Sep 18, 2013 blog. WILL AUTO OEMS BECOME POWER UTILITIES? Morgan Stanley thinks so?
Tesla Is Surging After Wildly Bullish Analyst Note That Explains How It Can Dominate A New Trillion Dollar Industry
“”Tesla’s quest to disrupt a trillion $ car industry offers an adjacent opportunity to disrupt a trillion $ electric utility industry,” he wrote in a new note to clients. “If it can be a leader in commercializing battery packs, investors may never look at Tesla the same way again.”
Why you could soon be buying your electricity from Elon Musk
“I decided to write this with so much “Big Data”, i.e. noise around electric vehicle disruption, TESLA, BMW, autonomous vehicles, etc.
With all the news around Tesla, GM, BMW, Audi, et al I want to get you folks to understand the business 101 of really understanding who and which business model in the profit pool will win. Is it better to be an oil company or a car OEM? It is better to make batteries or make cars or printers or mobile phones?”
WHY THE ELECTRIC CAR NEVER LEFT THE GOLF COURSE FROM THE 1950S, INDIAN PCO TELEPHONE BUSINESS MODEL KEY?
NEXT HEADLINE? GOOGLE ACQUIRES GENERAL MOTORS! SOFTWARE EATS HARDWARE!
THE NEXT “MOBILE” IS THE “AUTO-MOBILE” AND DETROIT THE NEXT VALLEY?
Conclusion. Business model disruption is the key and the current business model of Tesla as an AUTO OEM will not make it. It can disrupt if it becomes a utility company. So who is the competitor? Oil companies and the gas station across your home or workplace or the power utilities in the grid. This is a profit pool 101. Elon Musk is a very good entrepreneur. Pushing the boundaries and not afraid to fail.
WHY MARKETPLACES ARE EATING INDUSTRIES!
PROFIT POOL 101 AND GOOGLE SELLS HANDSET BUSINESS TO LENOVO
Now this is exciting. Watching shorting of equity and an opportunity to disrupt an industry? Ultimately three simple metrics win.
1. Cash Conversion Cycle
2. Inventory Stock Turns
What’s your call?