[zamler]

Originally Posted by Enoch Root

What I meant by economies of scale is that, when you create software, you can scale it infinitely, with little cost. If your customers simply sign up online, you can scale almost infinitely.

No you can't, the volume is limited by the number of devices out there. In the case of Apple their software success is directly linked to the devices they sell. Sure they can sell software for other devices, but that still doesn't make the market infinite. And you have to provide support and updates for said software the volume is not "free". It's a lucrative market for sure but hardly the infinite space you say it is. Consider how many software vendors are out there and how many are mega corporations, it's not many.

How about this, Tesla may end up licensing their autonomous tech. And Elon has said they would sell batteries to other auto makers but they need them all currently.

Building cars doesn't work that way. Every car needs seats, and a windshield, and tires...

As does any company building cars.

Also, most tech companies are global floaters and don't pay anywhere near their share of taxes. Tesla doesn't have that advantage either.

I don't know enough about this to say if it's an advantage or not.

Tesla's product is based on tech. And the competitive advantage that they currently enjoy is a result of tech. But no, they do not have the same advantages that the other big tech companies (Apple, Amazon, Facebook, Google) have

That is the point.

But Tesla is not competing with those companies, so why compare? If Apple decides to make a car whatever advantage you think "tech" companies have will be gone.

They have a 'tech' multiple. But they don't have the same advantages that the (real) tech companies have. They can't build a limitless number of cars, no matter how much of a technological advantage they currently hold.

Software vendors can't sell unlimited copies why do you think that? It's limited by demand and the number of devices people have. Is it easier to be a software only company? Probably, but again Tesla is not in that market possibly in the future.

The challenges to manufacturing millions of automobiles profitably, don't simply disappear, just because they have some seamless software advantages.

I have never suggested this. But the software advantage Tesla has is massive. Their Gigafactory's are also a huge advantage in my view they can crank out gigawatts of storage way beyond what anyone else can do currently. And they are barely scratching the surface of full capacity.

Don't get me wrong - I am not saying that they are going to disappear in a couple years. Far from it. In fact, I expect them to be technological leaders in the industry for some time.

What I am saying that their stock price is priced BEYOND perfection.

I'm tickled pink with their stock wish I had bought more. Is it over valued? Yea probably.

Here's what I know for sure, the auto sector does not tolerate new players. There have been no new nameplates that survived for long in what, the last 100 years? Many have come and gone or been bought out. For Tesla to even get this far says they are doing most everything right. My prediction, in 5 years Tesla will become the worlds most valuable corporation their stock will go past $5000.