Skip to main content
No. of Recommendations: 6
Technology matters much more than government policy. Once technology drives down the cost sufficiently there is no stopping the innovation. In my view, EVs crossed the chasm in 2020 driven mostly by improving battery technology. We are seeing history repeat, as EVs become feasible hundreds of startups and ICE incumbents get on the band wagon and most will fail or will be absorbed by bigger players as happened last century. Since everyone has his favorite "Tesla Killer" Tesla is the horse to bet on in the automotive sector.

What makes Tesla early 2021 different from Ford early 1900 is that Tesla has another market, energy generation and storage, that Elon Musk says rivals in size the automotive market.

The other thing to take into account is that from June 2019 TSLA has risen from 40 to 840, a 20 bagger in 20 months, a CAGR of 536%. That is simply not a sustainable growth rate. I got in in October 2020 and have a CAGR of over 1000%. As I transition to the Cathie portfolio I sold 84% of my TSLA and spread it into five other positions.

I believe TSLA will continue to outperform but not at 536% CAGR.

Denny Schlesinger
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.