You can see the same principle at work in all industries. This is not a peculiarity of the automotive world. Looking at the PC market, for example, One of the things that hurt us at Gateway was the fact that we didn’t have a robust server or printer business to subsidize our PC sales. I’ve seen firsthand how not having these cash cows can put a company at a real disadvantage. HP and Dell could afford to sell computers at break even or less whereas Gateway couldn’t. HP and Dell are still around, Gateway is not.
Most of the stories written about Tesla are by clueless writers who don’t know how to properly evaluate a business or analysts with a hidden agenda. There is an ever refreshed stream of puff pieces written about Tesla that try to frame them in the best possible light.
If you don’t believe me, go do a search on Amazon or iBooks for all the books written about Tesla Motors. There aren’t many but they are 100% uncritical propaganda with the exception of one. That one would be my new book, The Tesla Bubble.
If the coverage of Tesla had been more balanced I would have never written this book. But the coverage was so wrong and so pervasive that I felt someone had to write the other side of the story.
Available on iBooks now ---> The Tesla Bubble