Tesla Made Elon Musk Extremely Rich. India's Tesla Could Disappoint. Here's Why...

Oct 27, 2021

As I write this, the stock of Tesla is flashing in news headlines.

The market capitalisation of the world's most renowned electric vehicle maker has crossed a trillion dollars.

Even if temporary, the feat is commendable. Tesla's marketcap exceeds the GDP of countries like Indonesia, Turkey, Netherlands, Saudi Arabia, and Switzerland.

The meteoric rise did not come easy for Tesla.

It has been subject to severe volatility every time the company failed to meet its unrealistic targets in the past.

But post pandemic, the stock of Tesla managed to soar 8 times in 18 months.

But you would be wrong to think every other electric vehicle maker in the world could have similar fortunes.

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With today's fast-changing technology and concern about the environment, the popularity of electric vehicles (EVs) has been on the rise.

Most investors go the usual route of investing in large companies and waiting to rake in profits.

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Tesla isn't just an electric vehicle maker. It's also a technology company.

Take two of the biggest tech companies in the world, Apple and Microsoft. When they want to update their operating systems, they don't tell you to go back to the store with your laptop.

They push out software updates over the internet to you and all other users.

Tesla does the same thing.

It sends out a software update to its internet-connected fleet. This upgrades existing Teslas to the most advanced self-driving cars in the world. With other carmakers, you have to bring your car back to the dealer to have a software update installed.

And here is what most investors ignore.

Tesla is actually one of the world's most advanced AI (artificial intelligence) companies.

AIs pilot self-driving cars and Tesla's AI pilots are the best in the world. That's because AIs learn from processing vast amounts of driving data.

Teslas have accumulated more self-driving miles than any other company.

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So, the technology analysts do not value Tesla in terms of number of vehicles sold. But the number of self-driving miles.

As of July 2021, Teslas had driven themselves 1.6 billion miles. Within the next 2 years, it is expected to touch 10 billion miles. That's exponential growth.

Duplicating the Tesla hypothesis for India's largest carmakers, therefore, borders on idiocy.

None of the Indian automakers have a huge technology advantage, yet. Leave alone one that can offer them an edge in electric vehicles.

So, hoping that any of them could create wealth like Tesla could only bring disappointment.

Nevertheless, India's EV gold rush is real.

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And there are companies with huge technology advantages that are the hidden wealth creators in India's EV ecosystem.

My colleague Richa and I put together two special reports with all the details.

Electric Vehicle: Ultimate Market Intelligence Report

3 Backdoor Stocks to Play the 15x EV Opportunity

At our special EV summit on Monday, we explained how you could get access to these 2 reports right way.

If you missed the summit, you can watch it here.

Warm regards,

Tanushree Banerjee
Tanushree Banerjee
Editor, StockSelect
Equitymaster Agora Research Private Limited (Research Analyst)

PS: If you missed our mega EV summit, the video is available for a short time. Watch it here.

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