PART EIGHT/ PART ONE/ $TSLA $AMNZ The parallels b
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http://investorplace.com/2017/05/tesla-inc-ts...QoLf-XyuM8
Reasons Tesla Inc (TSLA) Won’t Be the Next Amazon.com, Inc. (AMZN)
AMZN and TSLA stock are both outstanding growth holdings, but Tesla is missing a few assets that Amazon has in spades
By Tom Taulli, InvestorPlace Writer & IPO Playbook Editor | May 1, 2017, 9:41 am EDT
http://investorplace.com/2017/05/tesla-inc-ts...QoM8uXyuM8
#1: Product Concentration
Amazon and its $136 billion in annual revenues have been built on its massive e-commerce business, but it has expanded to include other streams of income, including Amazon Web Services (AWS), Amazon Prime, the Kindle, Amazon Echo, Fire TV, Amazon Prime, the Dash Button and more.
While e-commerce is still the lion’s share of the top line, these other services are helping boost the bottom line.
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By comparison, TSLA relies on a mere handful of high-priced products that require advanced manufacturing. That’s magnified by the company’s history of missteps and delays, and could be increasingly problematic as Tesla embarks on its mass-market project, the Model 3. This will require ramping vehicle production from 1,088 per week to roughly 10,000 per week during the next couple years.
As InvestorPlace.com’s Will Ashworth recently remarked: “If the Model 3 doesn’t get the same kind of reviews from consumer product testing groups as the Model S gets, Tesla shareholders will look back on $300 as the price at which they should have sold.”
You could argue that the fold-in of SolarCity adds diversity to Tesla’s product line, but considering how unprofitable SolarCity was … it’s hard to factor that in as a positive yet.